CAPTIONING
TECHNOLOGY
SOLUTIONS.
ANNUAL REPORT 2022
OUR BUSINESS HAS EVOLVEDBEYONDTOHUMAN AI MEDIA ANNUAL REPORT 2022
INTRODUCTION
CAPTIONING
We are now a global company, with
six offices across three continents,
and our technology delivers over
7 million minutes of captioning,
transcription and translation for live
and recorded media content, online
events and web streams every month.
ABOUT AI-MEDIA
Two of the world’s leading captioning
innovators became one when Ai-Media
acquired EEG Enterprises in 2021.
Since then, Ai-Media has transformed
its market offering to better serve
the growing demand for high quality
captioning worldwide.
This demand has grown far beyond its
broadcasting origin. Today, captioning is
a priority for producers in live streaming
media, events, corporate, education,
government, municipalities, and more.
Now all these creators have access to
an unprecedented one-stop shop for
captioning in Ai-Media.
2003
2006
2008
2010
AI-MEDIA ENABLES
ACCESS ON PAY TV
Ai-Media’s captioning
endeavour began with
pay TV platform Foxtel.
It’s now grown to over
300,000 hours a year
of content across
hundreds of channels
around the world.
MAKING AN IMPACT
IN EDUCATION
To service the need for
captions in the classroom,
Ai-Media began researching
how to create a scalable
solution using respeakers
to deliver live captioning
at the speed of speech.
FIRST LIVE TEST FOR
CLASSROOM CAPTIONS
Ai-Media ran the first
on-site test of live
captioning for Deaf
and hard-of-hearing
students in mainstream
classrooms. The trial
was a huge success.
NEW INVENTORS
WIN FOR AI-LIVE
Ai-Media won its feature
episode on the Australian
Broadcasting Corporation’s
New Inventors program.
This win recognised the
enormous potential impact
of Ai-Live as a practical,
affordable, reliable and
scalable solution.
OUR BUSINESS HAS EVOLVEDBEYONDTOHUMAN 1
About Ai-Media
Year in Review
Global Highlights
Chair’s Letter
CEO’s letter
Products and Technology
– Captioning Solutions
– SubSilo
– iCap Network
– Global Opportunity
at the Coalface of Progress
1
2
4
6
8
12
14
16
17
19
Environmental, Social and Governance
Board of Directors
Directors’ Report
Auditor’s Independence Declaration
Financial Report
Directors’ Declaration
Shareholder Information
Corporate Directory
20
21
23
37
38
82
87
90
TECHNOLOGY
SOLUTIONS.
2017
2020
2021
TODAY
PARTNERSHIP
WITH FACEBOOK
Facebook announced
Ai-Media’s support for the
display of closed captions
on Facebook live streams.
This marked a milestone in
making videos on Facebook
accessible to all members
of the community.
AI-MEDIA LISTS
ON THE ASX
In September 2020,
Ai-Media’s ASX listing
followed a successful
$65.5 million Initial Public
Offer (IPO). The IPO gave
us capital to continue our
rapid growth, particularly
in North America with
the acquisition of three
US-based companies.
LAUNCH OF SMART LEXI
AND EEG ACQUISITION
Ai-Media launched its
ground-breaking automated
captioning solution Smart
Lexi in March 2021, beginning
with its application in live
broadcast. Then in May,
Ai-Media acquired leading
US technology company EEG
Enterprises, commencing our
transformation into a future-
proofed SaaS company.
AI-MEDIA BECOMES
A ONE-STOP SHOP
Thanks to the successful
integration of EEG, Ai-Media
is today a one-stop shop
of captioning, translation
and transcription solutions,
possessing all the products,
technology, and talent to
meet every customer need.
2
AI MEDIA ANNUAL REPORT 2022
YEAR IN REVIEW
The financial year 2021-22 was one of transformation for
Ai-Media, with the successful integration of EEG Enterprises
spurring impressive growth and significantly expanding our
range of captioning, translation and transcription solutions.
+22%
YoY revenue growth
+125%
YoY growth in Lexi &
Smart Lexi SaaS minutes
$15.2M
Cash balance at 30 June 2022
>40%
YoY revenue growth
for EEG
55%
Gross margin
REVENUE GROWTH
$60m
+63%
YoY gross profit growth
+9.8M
Improvement in EBITDA
BUY-BACK
PROGRAM OF
shares successfully completed
2M
226Permanent headcount
$60.1m
$49.2m
40
20
0
$16.2m
$18.4m
$25.4m
FY18
FY19
FY20
FY21
FY22
3
$21.9M
MINUTES DELIVERED
WITH LEXI OR SMART LEXI
4
AI MEDIA ANNUAL REPORT 2022
GLOBAL HIGHLIGHTS
TORONTO
CA
YOUNGSTOWN
US
NEW YORK
US
Since our foundation in Sydney almost two decades ago,
Ai‑Media’s presence has spread across the globe. Today, we have
575 employees – including 226 permanent staff – situated across
six office locations in the US, UK, Canada and Australia.
THE JOURNEY TO GLOBAL EXPANSION
In the last few years, Ai-Media has
made four strategic acquisitions that
have significantly expanded our talent,
technology and product suite. In May 2020,
the opportunity came along to acquire
highly regarded US captioning services
company Alternative Communications
Services (ACS) – an acquisition that saw
Ai-Media accelerate growth in the important
North American market.
ASX LISTING PROPELS GROWTH
In September 2020, Ai-Media’s ASX listing
followed a successful $65.5 million Initial
Public Offer (IPO). The IPO gave us capital
to continue our rapid growth, particularly
in Europe and the US, and the opportunity
to power continuing innovation within our
technology platform, allowing us to provide
a broadening range of services to our
valued customers.
AI-MEDIA’S TRANSFORMATION CONTINUES
In December 2020, Ai-Media announced
the acquisitions of two further US-based
captioning, transcription and translation
providers, Caption IT and CaptionAccess.
Then in May 2021, we announced the
transformational acquisition of market-leading
US video and captioning technology company
EEG Enterprises.
The acquisition of EEG not only allowed
Ai-Media to grow further into North America,
but also expand our product suite to include
EEG’s automated captioning solution Lexi
and launch our new automated captioning
solution, Smart Lexi. We also added iCap –
the largest closed captioning and subtitle
delivery network in the world – to our
technology offering.
Having successfully integrated these
acquisitions, Ai-Media is today a leading
global, vertically-integrated, live captioning,
transcription and translation technology
company – meaning the business touches
all points in the live captioning workflow.
5
LONDON UK
SYDNEY AUS
MELBOURNE AUS
OFFICE
LOCATIONS6 EMPLOYEES
575
226
PERMANENT
STAFF
6
AI MEDIA ANNUAL REPORT 2022
CHAIR’S LETTER
EVOLVING OUR STRATEGY FOR GROWTH
“We have never been better
equipped to meet the challenges
of an uncertain economy and
capitalise on the increasing global
demand for captioning.”
Deanne Weir, Chair
Dear fellow Shareholders,
Welcome to the second Annual
Report of Ai-Media Technologies
Limited (ASX:AIM). It has been a year
of transformation, challenge and
opportunity for Ai-Media, and I can
confidently say that we have emerged
as a fundamentally stronger company
that’s poised for accelerated growth.
Since our ASX listing in September
2020, Ai-Media has made four strategic
acquisitions that have significantly
enhanced our technology, product suite
and talent. In particular, our May 2021
acquisition of leading US technology
company EEG Enterprises presented
Ai-Media with a transformational
opportunity to become a future-
proofed, SaaS company.
We have successfully combined EEG’s
vast suite of market-leading technology
with our own to become a true one-
stop shop of captioning, translation and
transcription solutions. This key strategic
milestone saw Ai-Media and EEG debut
as a combined entity at the 2022 NAB
Show, signalling the start of an exciting
new era for our company as the world’s
leading captioning technology vendor.
Ai-Media now has all the fundamentals
in place to drive increased growth in
an ever-evolving captioning market.
None of our achievements of the
past year would have been possible
without the highly talented and dedicated
Ai-Media team. I offer them my sincere
thanks for helping our company achieve
impressive growth during a time of
increasing uncertainty and change.
I would also like to thank my fellow
Directors for their unwavering guidance
and support, which has helped steer
Ai-Media further toward its vision of
making the world’s content accessible
for everyone.
To our loyal shareholders, I’m truly
thankful for your ongoing support during
an uncertain and challenging year, and
I’m deeply grateful for your loyalty and
belief in our company. And finally, I would
like to thank our customers – from those
who have been with us for years, to our
growing number of new clients across
the globe, who have placed their trust
in Ai-Media in the past year.
WE HAVE SUCCESSFULLY COMBINED EEG’S VAST SUITE OF
MARKET-LEADING TECHNOLOGY WITH OUR OWN TO BECOME A TRUE ONE-STOP
SHOP OF CAPTIONING, TRANSLATION AND TRANSCRIPTION SOLUTIONS
AI-MEDIA IS A GLOBAL LEADER IN CAPTIONING, TRANSCRIPTION,
TRANSLATION AND AUDIO DESCRIPTION SERVICES
7
THE YEAR IN REVIEW
OVERCOMING MARKET CHALLENGES
As a significant Ai-Media shareholder
myself, it has been disheartening to
witness our company’s underperformance
in the stock market during the past year.
An increasingly uncertain economic
outlook, which has resulted in a broad
correction of technology stocks, has
certainly played its part. However,
Ai-Media’s recent integration of four
acquisitions, which has dramatically
changed our strategy and product suite,
has also been cause for uncertainty
in the market.
I sincerely believe that there is
a fundamental disconnect between
Ai-Media’s current share price and the
inherent value of the business, as well
as the immense opportunity that lies
before us. The strategic technology
investments we have made means
Ai-Media is ideally placed to take
advantage of an accelerating global
demand for high quality, convenient
captioning solutions.
SERVICING GROWING DEMAND
Our company’s transformation has
taken place against the backdrop of
increasing global adoption of the free
Automatic Speech Recognition (ASR)
captioning offered by major virtual
platforms like Zoom and Microsoft Teams.
While this has posed a challenge to
Ai-Media’s market share, it also presents
a tremendous opportunity for us.
The rapid adoption of free captions
since the outbreak of COVID-19 has
popularised the benefits of captioning
and heightened demand for captioning
services. Organisations across the globe –
from leading enterprises and government
agencies, to educational institutions
and broadcasters – are increasingly
seeking technology solutions that not
only provide higher levels of captioning
accuracy, security and scalability,
but also the one-touch convenience
offered by free captioning services.
With the technology and suite of
solutions that Ai-Media possesses
today, we have all the fundamentals
in place to capitalise on this demand by
offering higher quality, more secure and
convenient SaaS captioning solutions.
We have only just begun harvesting
this immense opportunity.
EVOLVING OUR STRATEGY
With our flagship Lexi and Smart
Lexi ASR captioning solutions, Ai-Media
continues to focus on driving increased
SaaS revenue. This shift has seen us pivot
from a strategy targeting individual end
users, to one focussing on the world’s
largest organisations.
CORPORATE GOVERNANCE
Since its inception in 2003, Ai-Media
has been focussed on making the world
a more accessible and inclusive place.
We therefore take incredibly seriously
our obligation to be good corporate
citizens and we are a company with
strong ESG credentials.
This transition of our revenue profile
and strategy, combined with the rapid
adoption of free captions, resulted in
an expected decline in our premium
revenue in FY22. Understandably, there
was a measure of concern among our
shareholders that these changing market
dynamics would result in a long term
decrease in Ai-Media’s revenue.
However, thanks to our technology
investments of years prior, Ai-Media
has a significant opportunity to
continue replacing that revenue through
our market leading ASR captioning
solutions. Our subscription-based
SaaS offerings allow us to deliver
solutions at a lower price point, while
yielding far higher margins than those
generated by our legacy Premium
human captioning services.
Our SaaS sales strategy targets the
world’s biggest and best organisations.
In FY22, we added several high-profile
organisations to our customer base,
including Google, Amazon and the UK
Parliament. We are committed to scaling
our SaaS business model to drive margin
growth and further profitability.
AS OF 30 JUNE 2022
36 %
OF AI-MEDIA’S
LEADERSHIP TEAM
50 %
OF OUR EMPLOYEES
IDENTIFY AS WOMEN
Ai-Media acknowledges its responsibility
to consider the environmental impacts
of our activities and strives to operate
in ways that minimise climate change.
The Board, through its Audit &
Risk Committee, works closely with
management to monitor environmental
risks and reduce our carbon footprint.
Internally, Ai-Media has adopted
a proactive focus to prioritise online
instead of in-person meetings, and
we are committed to minimising travel
to help reduce CO2 emissions.
Ai-Media embraces diversity in all forms
and strives to foster a positive culture
for our global workforce, where equity
and inclusion, health and wellbeing, as
well as human rights and community are
celebrated. Our recruitment practices aim
to create a truly diverse workplace and
address the inequities of broader society.
As of 30 June 2022, 36% of Ai-Media’s
leadership team and more than 50%
of our employees identify as women.
We believe that our vision to make the
world’s content accessible for everyone,
and our proud legacy as a purpose-
driven organisation, makes Ai-Media an
attractive captioning partner of choice
for the world’s leading organisations.
Our range of solutions not only provide
accessibility for the Deaf and hard-
of-hearing community, but have also
changed the way millions across the
globe consume content, helping them
to work, study, play and communicate
more effectively.
We are excited to have you, our
shareholders, with us on this journey
as we continue to drive positive
outcomes across the globe.
Deanne Weir
Chair, Ai-Media Technologies Limited
8
AI MEDIA ANNUAL REPORT 2022
CEO’S LETTER
TRANSFORMATIONAL TECHNOLOGY DRIVING GROWTH
“Ai-Media has all the elements in place to accelerate
growth in an ever-expanding captioning market, with
our great products, technology, talent and teamwork.”
Tony Abrahams, Co-founder, CEO and Managing Director
The FY22 year was one of transformative growth for Ai-Media, where we made huge gains
in realising our global vision – to make the world’s content accessible for everyone.
SAAS REVENUE
INCREASED
40 %
Ai-Media’s transition from a managed
services business to a technology business
delivering scalable SaaS products is at the
core of this transformative growth. We are
actively displacing our more expensive
but lower margin legacy Services revenue
with higher margin subscription (SaaS)
revenues. Over the course of the year,
SaaS revenue increased by over 40% with
further significant increases expected
in the years ahead.
The past year has seen us further extend
Ai-Media’s global footprint and market
offering, all while successfully integrating
our four recent strategic acquisitions.
Ai-Media is the only global one-stop shop
of captioning, translation and transcription
solutions, and an irreplaceable technology
partner for the biggest and best global
organisations and brands.
AI-MEDIA’S ACQUISITION OF EEG
CREATES CAPTIONING ONE-STOP SHOP
Two of the world’s leading captioning
innovators became one when Ai-Media
acquired EEG Enterprises in 2021.
Since then, Ai-Media has transformed
its market offering to better serve
the growing demand for high quality
captioning worldwide.
This demand has grown far beyond its
broadcasting origin. Today, captioning is
a priority for producers in live streaming
media, events, corporate, education,
government, municipalities, and more.
Now all these creators have access to
an unprecedented one-stop shop for
captioning in Ai-Media.
AI-MEDIA IS AN IRREPLACEABLE
TECHNOLOGY PARTNER FOR
THE BIGGEST AND BEST GLOBAL
ORGANISATIONS AND BRANDS
9
AI-MEDIA IS NOW THE ONLY VENDOR THAT CAN OFFER
AN END-TO-END CAPTIONING AND TRANSLATION SOLUTION
TO MEET ANY CUSTOMER REQUIREMENT OR PRICE POINT
AI-MEDIA DELIVERS
CAPTIONING SOLUTIONS TO
MEET ANY CUSTOMER NEED
By successfully integrating EEG’s
advanced technology, Ai-Media is now
the only vendor that can offer an end-to-
end captioning and translation solution
to meet any customer requirement or
price point. We can provide real-time
multilingual captioning of everything
from breaking news and movies, to
lectures, international conferences
and parliamentary proceedings.
Ai-Media offers all the hardware and
software customers need in one place,
including a range of on-premises,
virtualised and cloud captioning
encoders. This vast technology stack
seamlessly integrates with Ai-Media’s
range of captioning solutions, including
its flagship Lexi Automatic Speech
Recognition (ASR) solution, and its
Premium human captioning service.
All this is made possible thanks to
iCap – the world’s largest captioning
delivery network – which provides
unmatched reliability, security and
integration between Ai-Media’s
solutions and third-party captioners
across the globe.
Ai-Media’s solutions are future-proofed
for any captioning requirement –
applicable to any IP or SDI solution;
covering all media connection
architectures and standards; and
supporting your content all the way
from source to screen.
AI-MEDIA’S INNOVATIONS
MAKE CAPTIONING SIMPLE
Organisations across the globe are
increasingly realising that the benefits
of captions go far beyond simply
providing accessibility. They are also
proven to enhance engagement,
comprehension and information
retention, while multilingual captions
can break down language barriers
to tap into wider audiences.
Ai-Media is leading the way in delivering
these benefits to organisations across the
globe. Thanks to the integration of EEG,
the company now has the engineering
excellence to create breakthrough
solutions that make captioning far more
simple, cost-effective and efficient.
One example is Ai-Media’s innovative
Smart Lexi solution, which melds machine
learning automation with expert human
curation. Smart Lexi vastly simplifies
closed captioning for complex projects.
It’s ideal for networks needing affordable
closed captioning that’s fully supported
by captioning experts. Sky News Australia
and home shopping network TVSN have
adopted Smart Lexi to provide their
audiences with high quality captioning.
Ai-Media will continue leveraging its
technology and talent to make high
quality captioning and translation
easier and more cost-effective. This
helps content creators streamline
closed captioning, so they can grow
their revenue while improving the
audience experience.
UNIQUE PRODUCT PROPOSITION
Ai-Media’s unique product suite offers
end-to-end captioning, translation and
transcription solutions to large customers.
Whether to provide accessibility for
a virtual meeting, a large-screen display
at a stadium, or a TV broadcast, we
have all the technology to confidently
deliver a solution for any customer
need – a unique capability among
our industry competitors.
Our product suite combines the
best technology, security and service.
Ai-Media today boasts hundreds of
top-shelf US broadcasters as customers,
who were loyal to EEG for decades.
These customers are now sampling
the expanded products and services
that we offer – including Premium
captioning and translation.
Expanding EEG’s market leading
captioning technology outside of the
US has been a big achievement in FY22.
The iCap Network now covers the EMEA
and APAC regions, with long-standing
Australian customer the Nine Network
set to become the latest benefactor
in the months to come.
We’re also firmly focussed on, and have
made significant inroads toward, vastly
increasing the amount of Lexi captioning
we deliver through the iCap Network.
In FY22, Ai-Media delivered 21.9 million
minutes of Lexi captioning through
the network – a figure more than twice
that of FY21. We have successfully
transitioned several high-profile clients
from our Premium captioning service
to Lexi, including the likes of ESPN and
Sky News Australia.
AI-MEDIA
DELIVERED 21.9 M
MINUTES OF LEXI CAPTIONING
THROUGH THE ICAP NETWORK
All these achievements have taken place
while Ai-Media signed and renewed
key clients, including Google, Amazon,
Microsoft Teams, NBC, TVSN and
Parliament of NSW. We’re now the largest
captioning provider in the Australian
market, with a truly global client base.
Around three-quarters of Ai-Media’s
total revenue is generated outside
Australia, from our offices in the US,
UK, and Canada.
Today, Ai-Media has the technology,
team and market-leading reputation to
accelerate growth in an ever-expanding
market worth over $20 billion. With our
expansive, end-to-end suite of solutions,
we are uniquely positioned to meet the
growing need for accessible content
worldwide, across all industries.
I would like to extend my sincere
thanks to the Ai-Media Board for their
efforts in guiding the company through
what has been a transformative year
full of challenge and opportunity.
I would also like to thank our talented
global team, who are the heartbeat of
our organisation, and through their
efforts, continue to propel Ai-Media
toward our vision of making the word’s
content accessible for everyone.
10
AI MEDIA ANNUAL REPORT 2022
CEO’S LETTER
FY22 HIGHLIGHTS
The past year has delivered significant
highlights for the business that set us
up for future growth, including:
21.9M MINUTES
CAPTIONED, THE HIGHEST
FIGURE IN AI-MEDIA’S HISTORY
STATUTORY REVENUE OF
$60.1M
$9.8M
IMPROVEMENT IN
EBITDA, UP FROM
($8.7M) IN FY21
UP 22%
GROSS PROFIT
INCREASED
FROM 41% TO
55%
Successfully launched new cloud
solution SubSilo, with early adoption
by world-leading organisations
SAAS AND DEVICES
REVENUE SHARE
INCREASED TO
30%
UP FROM 6% IN FY21
Significant increase in Lexi
captioning delivered through
the iCap Network, and the
expansion of the network
into APAC and EMEA
Signed or renewed flagship
customers including Google,
Amazon, Microsoft Teams, NBC,
TVSN and Parliament of NSW
Continued to build a company
where our people come first,
with diversity and inclusion
an important part of our culture
11
EXPANDING AI-MEDIA’S
SAAS OFFERING
Driving increased SaaS revenue remains
a core focus for Ai-Media, and we are
working tirelessly to expand our suite of
cloud solutions. We’re particularly excited
about SubSilo, which was launched to
market in June 2022.
SubSilo is designed to ensure that
our customers get the most out of
their captions. This powerful archive
and search tool allows users to view
live captions of an entire session as raw
text. Through an intuitive web portal,
users can search and scroll through
time-stamped captions in real time
or post session.
SubSilo presents a significant growth
opportunity for Ai-Media, providing
the chance to upsell our existing
captioning customers and target new
ones – especially in the government,
corporate and media sectors. The
benefits of SubSilo have already been
realised by some of the world’s most
important institutions, including
the UK House of Commons and the
Parliament of New South Wales, as
well as our long-standing customer
Sky News Australia.
AI-MEDIA CAN NOT ONLY
DELIVER ASR CAPTIONING
THAT’S FAR MORE RELIABLE
AND ACCURATE THAN
THAT OFFERED BY VIRTUAL
PLATFORMS, BUT ALSO
MORE SECURE, FLEXIBLE
AND SCALABLE
GROWTH OUTLOOK
The outsized demand for captioned
content is showing no signs of abating.
In the first six months of 2021 alone,
there were 300 million meetings covering
three billion minutes of ASR captioned
content on Zoom and Microsoft Teams.
300 MILLION
MEETINGS COVERING
300 B MINUTES
OF ASR CAPTIONED CONTENT
ON ZOOM AND MICROSOFT TEAMS
The increasing accessibility regulations
of nations seeking compliance with
The United Nations’ Convention on the
Rights of Persons with Disabilities are
no doubt driving this demand. However,
there are other forces at play, too.
Organisations worldwide are increasingly
recognising the many benefits of captions
and multilingual translations, including
the ability to maximise engagement
and global reach for their content.
Ai-Media is uniquely placed in the
market to serve this increasing demand
for captioned content. Our unmatched
ability to deliver an end-to-end
captioning, translation and transcription
solution for any customer need has seen
us achieve record growth in the last year.
With our constant product innovation,
the expansion of our SaaS offering, and
our strategy targeting the biggest and
best global organisations, I’m confident
that Ai-Media has all the foundations
in place to achieve further success in
the years to come.
ADAPTING TO AN EVOLVING
TECHNOLOGY LANDSCAPE
The dramatic increase in demand
for captioned content has seen ASR
technology advance significantly in recent
years, with the world’s leading virtual
platforms now offering free captions.
This is a technological shift that
Ai-Media had anticipated years prior.
We took proactive steps to ensure
we would remain competitive in the
ASR space, and one of those was
acquiring EEG. The integration of EEG’s
technology provides Ai-Media with
a unique advantage in the market
and a significant growth opportunity,
particularly with respect to broadcast
and large enterprise customers.
Ai-Media can not only deliver ASR
captioning that is far more reliable
and accurate than that offered by
virtual platforms, but also more secure,
flexible and scalable. We have all the
technology in house to confidently
caption content whenever a customer
needs it, and whatever their technical
requirements, while providing piece of
mind through our dedicated human
support. These are capabilities
that free captions, and competing
captioning vendors, simply can’t offer.
The iCap Network and our range of
iCap encoders provide Ai-Media with
a tech-stack and capabilities unrivalled
by competing captioning vendors. It allows
us to distribute captioned content from
any source, to any screen – whether for
a virtual meeting, an in-room display at
a corporate event, or an over-the-top
content platform with multiple channels.
Combine this with our Lexi, Smart Lexi
and human-curated Ai-Live captions, and
we can deliver customers an end-to-end,
future-proofed solution that delivers
the highest accuracy, most secure and
reliable captions, easily and affordably.
THE ICAP NETWORK AND OUR RANGE OF
ICAP ENCODERS PROVIDE AI-MEDIA WITH
A TECH-STACK AND CAPABILITIES UNRIVALLED
BY COMPETING CAPTIONING VENDORS
Tony Abrahams
Co-founder, Director and CEO
Ai-Media Technologies Limited
12
AI MEDIA ANNUAL REPORT 2022
PRODUCTS AND TECHNOLOGY
Ai-Media has built a comprehensive product suite to match every customer requirement
and price point for captioning, translation and transcription – whether live or recorded.
MORE THAN
50%
OF NETFLIX VIEWERS
SWITCH THE CAPTIONS ON
85%
OF FACEBOOK VIDEOS ARE
VIEWED WITH THE SOUND OFF
80%
OF PEOPLE WHO USE CAPTIONS
AREN’T DEAF OR HARD OF HEARING
DELIVERING THE FUTURE
OF ENCODING TECHNOLOGY
IP video production is the future
of broadcasting, and Ai-Media’s
iCap Alta virtualised encoder is the
answer for any organisation looking
to leverage the benefits of captioning
in IP video environments.
iCap Alta is designed to help
organisations seamlessly transition
from hardware-driven SDI workflows
to software-controlled IP video
environments. The solution helps save
time and reduce costs with streamlined,
next-generation workflows that are
software-driven, fully virtualisable
and native IP.
Organisations across the globe –
from broadcasters and enterprises,
to government agencies and tertiary
institutions – use iCap Alta to caption
their content reliably, flexibly and
securely. The solution makes it easy
to broadcast high quality video with
captions for any need – whether for
a high-end live event, a TV broadcast,
an over-the-top content platform,
or an in-stadium display.
Over the years, Ai-Media has spent over
$50 million developing our proprietary
technology, and with the successful
integration of EEG Enterprises, we are now
a true one-stop shop of cloud captioning,
translation and transcription solutions.
What separates Ai-Media from the
competition is our ability to deliver an
end-to-end solution to meet any customer
requirement. We can provide real-time
multilingual captioning of everything
from breaking news and movies, to
lectures, international conferences
and parliamentary proceedings.
Ai-Media offers all the hardware and
software customers need in one place,
including a range of on-premises,
virtualised and cloud captioning
encoders that seamlessly integrate
with our Automatic Speech Recognition
(ASR) and human captioning solutions.
All this is made possible thanks to iCap
– the world’s largest captioning delivery
network – which provides unmatched
reliability, security and integration
between our solutions and captioners
across the globe.
Ai-Media’s solutions are future-proofed
for any captioning requirement –
applicable to any IP or SDI solution;
covering all media connection
architectures and standards; and
supporting your content all the
way from source to screen.
Global broadcasters like Paramount
and Peacock, and sports organisations
like Major League Baseball are just a few
of the leading brands that maximise
accessibility, engagement and global
reach with the help of iCap Alta.
Thanks to the iCap Network, iCap Alta
integrates seamlessly with Ai-Media’s
ASR cloud captioning solutions, Lexi
and Smart Lexi, our Premium human
captioning service, and third-party
captioners across the globe.
iCap Alta delivers the following benefits:
– Allows for a seamless transition
from hardware-driven captions
– Multiple streaming modes, including
MPEG TS, SMPTE 2110 or CDI
– 24/7 connectivity to Lexi, Smart Lexi
or human captioning services
– Easy-to-use control though
a web browser or API
– SRT support ensures highest quality
video over unpredictable networks
– Deployed as a standalone virtual
machine on VirtualBox, Cisco or
Microsoft Controllers
– Supports all captioning and
subtitling standards and can be
installed on premises
– Offers maximum security though
server-based authentication
and encryption
13
LIVE STREAM
CAPTIONING IN THE CLOUD
Falcon, Ai-Media’s cloud encoding
solution, makes it easy and affordable
to add captions to RTMP streams.
Quick and seamless to set up, manage
and scale, the solution is a budget-
friendly alternative to SDI video hardware.
Falcon is compatible with all major live
streaming platforms, including Facebook
Live, YouTube Live Events, Twitch,
UStream, and many more.
SDI ENCODING MADE SIMPLE
For those not yet making the digital
transformation leap to IP video,
Ai-Media’s iCap Encode Pro allows you
to embed captions into a HD-SDI video
signal. It’s trusted by major TV networks
and live venues across the world, offering
a low operational cost and low-latency
caption display.
iCap Encode Pro provides high-tech
capabilities to meet varying broadcast
and streaming needs, from local
broadcasts, to municipal, educational
and corporate meetings. Simple to set
up and use, iCap Encode Pro works with
most common broadcast video formats
and seamlessly connects to Lexi, Smart
Lexi and our Premium captioning service.
Ai-Media also offers HD VANC encoding
for the openGear® platform with our
iCap Encode Pro Card. And for those
requiring basic caption insertion features,
Ai-Media’s iCap Encode Basic provides
a highly effective yet affordable solution.
ENHANCING LIVE EVENTS
Ai-Media’s encoder technology
continues to service the growing need
to provide accessibility for live events
and conferences. Our iCap Encode
4K provides event organisers with
a native 12G solution to maximise
event engagement and audience reach.
It provides the flexibility to work with
broadcast, live stream and in-room
spaces, while having the option to
encode in 4K or HD-SDI.
Event displays can be further
enhanced with Ai-Media’s iCap Viewer
encoder, which delivers world-class
caption connectivity designed for
video conference displays, with easy
setup and cost-efficiency in mind. iCap
Viewer allows you to add captions while
keeping all presentation content fully
visible. It scales input video down by
15%, while providing the option to place
captions above or below the video area.
Font, size, text colour and more are
fully customisable.
14
AI MEDIA ANNUAL REPORT 2022
CAPTIONING SOLUTIONS
CAPTIONING SOLUTIONS
Ai-Media combines the latest ASR technology and human curation to deliver
highly accurate, reliable and affordable captioning solutions customised to any need.
Organisations across the globe are
increasingly realising that the benefits of
captions go far beyond simply providing
accessibility. Captions are also proven to
enhance engagement, comprehension
and information retention, and Ai-Media
is leading the way in delivering these
benefits with our market-leading
captioning solutions.
Some of the world’s biggest brands
choose our captions to enhance their
TV broadcasts, live stream videos, events,
virtual meetings, and more. Ai-Media’s
world-leading iCap Network allows us
to deliver a full range of tiered captioning
products, ranging from automated
(Lexi), semi-automated (Smart Lexi) to
our flagship Premium human-curated
captions. iCap truly separates us from
the competition, enabling Ai-Media
to deliver our captioning solutions
to customers anywhere in the world,
at an affordable price.
Customers choose our captions
because they’re reliable, scalable and
ensure the highest accuracy. Quality
is front and centre of everything we do
at Ai-Media. Our caption quality is based
on a robust, measurable and verifiable
system consistent with international
best practice. We regularly conduct
independent quality assessments using
the globally recognised NER methodology.
Audit reports are made available to our
customers and underpin our commitment
to drive continuous improvement.
PREMIUM CAPTIONS
Premium captions are Ai-Media’s
top-tier captioning offering. Generated
by Ai-Media’s skilled and experienced
human captioners, this service delivers
the highest accuracy of all our captioning
solutions at over 99%.
PREMIUM CAPTIONS DELIVER
ACCURACY OF OVER
99%
Through our Ai-Live service, Premium
captions can be delivered remotely
to any screen or web-enabled device,
including Zoom and Microsoft Teams.
They maximise accuracy even with
difficult to understand speech thanks
to our expert team, who can phonetically
spell out difficult words. Our team
also provides professional round-the-
clock support, coordination services
and monitoring.
TIERS
PREMIUM
Live human curation
= Ai-Live Premium + bundles,
including recorded
SMART LEXI
Semi-automated
= Smart Lexi
LEXI
Automated = Lexi
LEXI
Fast, efficient and scalable, Lexi is
the world’s leading ASR captioning
solution. It uses algorithmic machine
learning workflows to achieve up to 96%
accuracy – far exceeding that of ‘out-of-
the-box’ automated captions. Those who
experience Lexi are impressed by its high
accuracy, low latency and ease of use,
leading to strong upsell opportunities
for higher volumes of service and even
higher-quality services.
The key to Lexi’s high accuracy is its
ground-breaking Topic Models feature.
By absorbing relevant data unique
to each implementation, it allows
Lexi to recognise topics and distinctive
vocabulary, as well as observe context.
Combined with iCap Translate, Lexi can
translate content from and into over
100 languages.
smart
SMART LEXI
Smart Lexi is a ground-breaking solution
that layers expert human curation onto
our Lexi ASR engine to deliver accuracy
approaching that of human captions,
but at half the typical price.
Ultimately, it’s humans that puts
the “smart” in Smart Lexi. Our expert
captioning team leverage in-depth
research to constantly update custom
dictionaries to further enhance Lexi’s
Topic Model feature. Refined and expert-
maintained models tailor key names
and phrases to each captioning session,
reducing error rate for custom terms
by over 50%.
Our expert team also provides
live support for job scheduling and
management, ensuring top priority
tech support for any issues. Smart Lexi
Coordinators provide 24/7 caption
monitoring and are on call to get captions
back on air in the event of a dropout.
15
AI-MEDIA HELPS SKY NEWS
DOUBLE ITS CAPTIONING
WHILE HALVING COSTS
An end-to-end captioning solution
from Ai-Media has helped Sky News
Australia future-proof its captioning
infrastructure and enhance accessibility
for millions of viewers.
Sky News is a long-standing Ai-Media
customer who originally used our
Premium human service to caption
nine hours of content per day. In 2021,
Ai-Media delivered an end-to-end
captioning solution that modernised
the company’s captioning infrastructure.
It comprised of four iCap Encode Pro
Cards and involved migrating Sky News
to our automated Smart Lexi solution.
HELPING GROOVY GECKO
EXPAND AUDIENCES FOR
GLOBAL BRANDS
When global web streaming company
Groovy Gecko needed an innovative
solution to reach a wider audience for
their customers, they chose Ai-Media.
Since 2018, our ground-breaking live
multilingual captioning solutions have
helped Groovy Gecko transform live
events and productions for the likes
of Lexus, Tesco, Roche and Cancer
Research UK. Our services have
enabled these customers to increase
viewership and engagement, while
ensuring accessibility with a reliable,
accurate and easy-to-manage
turn-key solution.
The company has since more than
doubled its captioning to 19 hours
per day, while slashing its hourly
captioning costs by 50%. Towards
the end of FY22, Sky News purchased
additional iCap Encode Pro Cards
and plans to expand Smart Lexi
across two additional channels.
GOOGLE ENHANCES
ITS CORPORATE MEETINGS
AND EVENTS WITH AI-MEDIA
In 2022, Ai-Media signed a three-year
deal with Google to be its exclusive
live captioning partner.
From August 2022, we will provide live
multilingual captions for an average of
60 meetings per month across Google’s
global corporate locations. Ai-Media will
also provide captions for Google events
held in the US, Europe and Australia.
And thanks to our Online Booking
Portal, Googlers will be able to make live
caption bookings with just a few clicks.
LIVE MULTILINGUAL CAPTIONS
FOR AN AVERAGE OF
60 MEETINGS
PER MONTH ACROSS GOOGLE’S
GLOBAL CORPORATE LOCATIONS
16
AI MEDIA ANNUAL REPORT 2022
SUBSILO
A powerful cloud archiving and search tool that
saves times and maximises the value of live captions.
A highly secure solution trusted by
the world’s leading institutions, SubSilo
provides invaluable efficiencies to the
UK House of Commons, the Parliament
of New South Wales and the Parliament
of Western Australia. The solution
also helps broadcasters like Sky News
Australia save time and get the most
out of their live captions.
Launched to market in June 2022,
SubSilo is a simple-to-use cloud solution
that allows you to view live captions of
an entire meeting or session as raw text.
Through an intuitive web portal, you can
easily search and scroll through time-
stamped captions in real time or post
session. Thanks to the iCap Network,
SubSilo is accessible anywhere, at any
time from any web-connected device.
SubSilo expands Ai-Media’s cloud offering
and presents a huge growth opportunity
for us. It gives us the chance to upsell our
existing captioning customers and target
new ones – especially in the government,
corporate and media sectors.
SUBSILO
DELIVERS THE
FOLLOWING BENEFITS:
Eliminates the time-consuming
manual work required to
transcribe sessions
Removes the need to distribute
a transcript post session
Journalists can quickly find
quotes and Parliamentarians
can see what someone just said
Makes it easy to transcribe
and manage minutes for
Annual General Meetings
Reduces the costs of compiling Hansard-style official
records and improves speed of access to same day
proceeding information for member offices
Customisable permissions allow
access to select staff members
or company associates
All captioned sessions are
archived, easily searchable and
protected by encrypted security
17
ICAP NETWORK
From SDI to IP Video, 4K, and everything in-between, iCap is
the largest captioning and subtitle delivery network in the world.
iCap sits at the core of Ai-Media’s
ecosystem of solutions. It connects our
encoder technology with our captioning
solutions, allowing us to deliver captions
to any screen in the world. In FY22,
88.9 million minutes of content was
carried over iCap, with 21.9 million
of these minutes delivered with
Lexi or Smart Lexi.
iCap is of immense strategic importance
for Ai-Media, allowing us to offer
a true end-to-end solution to meet
any customer requirement – whether
to caption a virtual meeting, an over-
the-top content platform with multiple
channels, or an in-stadium display.
iCap provides 24/7/365 connectivity to
thousands of certified caption partners
around the globe and currently supports
an ever-growing number of broadcast
and cable channels, over-the-top content
providers, professional sports stadiums,
universities, conference centres,
and more.
IN FY22
88.9 M MINUTES
OF CONTENT WAS
CARRIED OVER ICAP
21.9 M MINUTES
DELIVERED WITH
LEXI OR SMART LEXI
smart
ICAP NETWORK
ENCODE
+ CAPTIONS
DISPLAY
PHYSICAL
iCAP
ENCODE
VIRTUALISED
iCAP
ALTA
CLOUD-BASED
iCAP
FALCON
H
i
g
h
e
s
t
R
e
v
e
n
u
e
smart
n
i
g
r
a
M
t
s
e
h
g
i
H
EMBEDDED
PERSONALISED
iCAP
VIEWER
AI-LIVE
ICAP PREFERRED PARTNER PROGRAM
Launched in FY22, the iCap Preferred
Partner Program is a huge step forward
for the entire captioning market. It enables
third-party human captioning companies
to create a bridge to the future without
having to take on a large investment,
risk and operational complexity.
In essence, this program allows our
partners to seamlessly mix in cutting-edge
ASR solutions with their core proposition
to better serve their customers’ needs.
ICAP IS FORECAST TO DELIVER
132 M
MINUTES OF CAPTIONING
PER YEAR BY 2025
ICAP PREFERRED PARTNER
PROGRAM BENEFITS
– Partners become licensed
resellers of Lexi at an exclusive
discount on market pricing
– 2-year agreement
(with potential to extend)
– Unlimited iCap usage
– Exclusive look at R&D
and product roadmap
– Free sales team training,
onboarding and materials
– Personalised insights report
with metrics, data and usage
– Exclusive co-marketing initiatives
– Optionality to resell additional
modules (more modules =
higher revenue share)
– Partners continue to own the
billing relationship with customers
– Flexible billing with 45-day
payment terms
18
AI MEDIA ANNUAL REPORT 2022
ICAP NETWORK CONTINUED
ICAP NETWORK GROWTH
iCap’s continued growth is a testament
to the high customer satisfaction it
delivers. Ai-Media, and EEG Enterprises
before it, have for the past decade spent
millions in research and development
to enhance iCap. We will continue
to heavily invest in the growth and
development of the network to solidify
its position as the global standard
for live captioning delivery.
At its current growth rate, iCap is
forecast to deliver 132 million minutes
of captioning per year by 2025. With this
growth, the network has now reached
an inflection point which has driven
key decisions to increase its stability,
security, privacy and our partners’
ability to monetise our market-leading
automated solutions.
For security and privacy reasons,
Ai-Media’s Lexi and Smart Lexi are
now the only ASR solutions that are
compatible with the iCap Network.
A select number of companies are
now able to join the iCap Preferred
Partner Program, which provides
the exclusive opportunity to resell
our market-leading automated
captioning and translation solutions.
VOLUME GROWTH (MINUTES MILLIONS)
30
20
10
0
Q4
FY17
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY18
FY19
FY20
FY21
FY22
Services
Lexi/Smart Lexi
3rd Party iCap
GLOBAL OPPORTUNITY AT THE COALFACE OF PROGRESS
19
As a vertically integrated provider of captioning technology, Ai‑Media’s suite of
products can match any customer’s requirements, including real‑time translation
of everything from breaking news and movies to lectures, international
conference and parliamentary proceedings.
WORKFORCE
575 GLOBALLY
INCLUDING ACCREDITED CASUALS,
FREELANCERS AND CONTRACTORS
PIVOT INTO THE FUTURE
For Ai-Media, FY22 has been one of
transformation and growth, as the
global market for captioning and
translation increases.
In the coming year, and in the
medium-to-long term, we will continue
to transform – taking you, our valued
shareholders, on the journey with us.
“We could see video being
adopted more across education
and business and we knew we
could help make that content
accessible. Of course, we didn’t
anticipate the world would soon
face a global pandemic which
would massively accelerate that
trend, and there is still a lot more
growth to come,” says Weir.
GLOBAL INDUSTRY TAILWINDS
As the global market for video content
continues to grow rapidly, so does
the demand for accurate, affordable
captioning, translation and transcription
services. The COVID-19 pandemic has
only accelerated this growth, with
permanent changes to the way the
world lives, works and learns. Ai-Media
is on the frontline of this growth,
standing by customers as meetings,
lectures and even national parliaments
go fully online.
Now a global operation successfully
bringing Australian entrepreneurship
to the world, the company provides
captioning and translation services
for businesses, workplaces, events,
education, government and
broadcast media.
We make our leading captioning and
translation technologies available to
everyone around the world – across
purposes, industries, platforms
and languages.
Aside from the impact of COVID-19,
there are other strong tailwinds driving
growth in demand for our services:
BREAKING DOWN BARRIERS
Globally, we are increasing understanding
and breaking down barriers.
–
–
Increasing regulatory requirements
to make content accessible for all –
not just in broadcasting, but in
educational and corporate
environments too.
Increasing penetration of video
streaming and video content on
devices, such as smartphones.
With its comprehensive,
market-leading product suite,
committed customer base, global
presence and strong financial
position, Ai-Media is ideally placed
to continue riding these tailwinds.
PATHWAY TO A GLOBAL OPERATION
Ai-Media began providing captioning
to Australian broadcasters, and with
the development of its Ai-Live product
moved into the education and corporate
sector. Our first overseas expansion was
into the UK and we then set our sights
on the North American market.
One great example of that is an event
for Unilever, which brought together
14-year-old Instagram influencers
from 18 different countries.
We translated the event into and
out of 11 different languages, allowing
someone from Romania to participate
with others from Poland, Bulgaria
and Turkey.
We have discovered one important
thing: teenagers from across Europe
have vastly more in common with each
other than they do with grown-ups
in their own country who speak the
same language.
In this way we are beginning to draw
geographically disparate communities
together at a cost-effective price point.
“Our continuing partnership
with Sky News Australia focuses
on technology innovation and
automation. We’re delighted to
launch Smart Lexi on Sky News
Australia, providing 24/7 access
to captioning for the very first
time at a quality level that can
be relied upon by viewers,”
Abrahams says.
20
AI MEDIA ANNUAL REPORT 2022
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
As a global technology business with the mission to make the world’s content accessible
to everyone, Ai‑Media’s board and management understands the importance of considering
the environmental, social and governance (ESG) aspects of our activities. We aim to ensure
that material ESG factors are integrated into our strategy, operations, risk frameworks and
that we regularly disclose progress to our investors and other stakeholders.
Ai-Media has a long history of
advancing social inclusion in the way
we do business. With the growing
importance of ESG factors to our
customers, investors, regulators and
other stakeholders, further developing
our ESG strategy is an imperative that
goes hand in hand with Ai-Media’s
mission and priorities. We are currently
formulating a comprehensive ESG
strategy, building on our existing
range of initiatives to make a positive
contribution and minimise risk.
In addition, we continue to advance
existing ESG priorities, outlined below.
ENVIRONMENTAL
With the growing understanding of
the need for all companies to minimise
their environmental impact, we are:
– Undertaking periodic reviews of
our physical space requirements
and, where applicable, choosing sites
with the highest possible energy
efficiency ratings
– Reducing non-essential travel
– Minimising single-use plastics
within our offices
– Ensuring responsible recycling
of e-waste and paper and use
of resources, including water
and electricity
SOCIAL
Ai-Media was founded to ensure
that all people are provided access
to content, and advancing inclusion
is core to our business. This includes
advocating for inclusive policies
and programs for people living with
disabilities in the markets in which
we operate at both government
and community levels. We are also
committed to attracting and retaining
exceptional people in an inclusive
workplace that embraces diversity
and equity.
Ai-Media currently provides its people
with a range of initiatives which foster
safe, diverse and inclusive workplaces,
continuous learning and nurture and
reward career development. We offer
competitive pay and benefits, career
development opportunities and
learning programmes, including sign
language interpretation classes in
multiple languages.
The Leonie Jackson Education Grant
was launched in 2022, in honour of
the late Leonie Jackson (1971 – 2021),
a founding member of Ai-Media.
Leonie’s passion was to make the
world accessible for all – a mission
we continue every day. Ai-Media offers
a grant of up to AU$10,000 to an eligible
employee for the purposes of assisting
them fulfil their educational goals.
AI MEDIA OFFERS
A GRANT OF UP TO
AU$10,000
TO AN ELIGIBLE EMPLOYEE FOR
THE PURPOSES OF ASSISTING THEM
FULFIL THEIR EDUCATIONAL GOALS
60%
AI-MEDIA’S BOARD
ARE FEMALE
GOVERNANCE
Ai-Media is dedicated to continual
improvement in our corporate
governance processes, including:
– Ensuring Board oversight of the
company’s affairs and operating
in the best long-term interest of
the company and our shareholders
– Recruiting a diverse board
experienced in executive and
strategic leadership, governance,
audit and risk, financial management,
people, technology, innovation
and with expertise in ESG and
sustainability. Ai-Media’s board
is currently 60% female.
– Taking a transparent, structured
approach to risk management
including regular reviews across
all key business areas
– Ensuring independent, non-executive
directors chair all Board committees,
including the Audit & Risk Committee
(“ARC”), and the Remuneration &
Nomination Committee (“RNC”).
– The ARC oversees the integrity
of the company’s financial
statements, accounting policies
and reporting, and
– The RNC reviews key initiatives
relating to leadership, talent
recruitment, retention, diversity,
inclusion and remuneration equity
– Continually improving our
cybersecurity and data protection
by monitoring threats and taking
preventative actions to ensure
business continuity, protection
of intellectual property, and the
safeguarding of business and
client data
– Commitments to regular reviews
and transparency, including
ensuring Board-endorsed policies
are available on Ai-Media’s website
and intranet
– Participating in Workplace Gender
Equality Agency (WGEA) reporting
since 2015
BOARD OF DIRECTORS
21
DEANNE WEIR
Non-Executive Director and Chair
BA(Hons) LLB(Hons) LLM
ANTHONY ABRAHAMS
Co-Founder, Director and Chief Executive Officer
BCom (Hons). LLB (UNSW), MPhil. MBA (Oxford)
JOHN MARTIN
Independent, Non-Executive Director
BA LLB (Hons)
Deanne has served as a director of Ai-Media
since 2010 and became Chair in August
2013. An entrepreneur, company director
and philanthropist, she previously spent
10 years at ASX listed company Austar
United Communications as General
Counsel and Company Secretary. Deanne
is also Chair of Seer Data and Analytics,
an Australian start-up.
Deanne is passionate about community
engagement and the power of storytelling
to help influence social change. She was
a long-term Board member and Deputy
Chair at Screen Australia and in 2017 was
appointed Chair of the Sydney Film Festival.
Deanne is a graduate of the Australian
Institute of Company Directors.
Tony co-founded Ai-Media in 2003.
He served as a Director of Northcott
Disability Services from 2010 to 2018 and
was recognised by the World Economic
Forum as a Young Global Leader in 2013.
In previous roles, Tony worked to establish
the Oxford Internet Institute in 2001,
while attending the University of Oxford
as a Rhodes Scholar. Tony has been
a member of the Australian Institute
of Company Directors since 2006.
John joined the board in 2010 and served
as the company’s first Chairman until 2013.
He’s an experienced company director
and business executive, having served
as CEO and director of ASX-listed Babcock
& Brown Communities, Primelife and
Regeneus. John is a Non-Executive Director
of Australian law firm Sparke Helmore;
Sydney biotech company Biopoint; US
internet services company Lokket and
Melbourne not-for-profit CCRM Australia.
He is also a member of the Australian
Institute of Company Directors.
ALISON LOAT
Independent, Non-Executive Director
BAH, Queen’s University, Kingston Canada;
MPP, Harvard Kennedy School
Alison is the Managing Director,
Sustainable Investing and Innovation
at OPTrust, a Canadian public pension
plan. Previously, she was the Senior
Managing Director of FCLTGlobal,
a long-term investing organization,
the CEO of a think tank and a consultant
at McKinsey & Company. She’s also on
the board of two Canadian educational
institutions and a privately held
media company.
Alison received the Queen’s Gold and
Diamond Jubilee Medals and was named
one of the 100 Most Powerful Women
in Canada. She has degrees from
Queen’s University and the Harvard
Kennedy School.
CHERYL HAYMAN
Non-Executive Director (appointed 14 March 2022)
Bachelor of Commerce, FAICD, FGIA
JONATHAN PEARCE
Non-Executive Director (retired 31 August 2021)
Qualifications: B Fin.; Graduate Diploma of App. Fin
Jonathan was appointed to the Board in
January 2020. He has significant experience
in the finance industry and is a Portfolio
Manager of the CVC Emerging Companies
Fund. Jonathan was previously an
Investment Manager at CVC Limited and has
held senior roles in a number of boutique
investment and advisory houses.
Cheryl Hayman is an experienced
Non-Executive Director, currently serving
on ASX-listed companies, Hancock and
Gore Ltd and Beston Global Foods Ltd.
She also serves as director of Chartered
Accountants ANZ as well as non-profits
Darlinghurst Theatre Company and Peer
Support Australia. Cheryl is an appointed
member of the Dept. of PM and Cabinet’s
Digital Experts Advisory Committee,
a Fellow of the AICD and a member of
Chief Executive Women. She regularly
provides mentorship for many individuals.
Prior to entering the Boardroom,
Cheryl was a senior marketing leader
who led large teams locally and overseas
to achieve significant growth and develop
innovative new products with global
consumer companies, George Weston
Foods, Yum! Restaurants and Unilever.
22
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Contents
30 June 2022
Directors' report
Auditor's independence declaration
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Note 1. General information
Note 2. Significant accounting policies
Note 3. Critical accounting judgements, estimates and assumptions
Note 4. Restatement of comparatives
Note 5. Operating segments
Note 6. Revenue
Note 7. Other income
Note 8. Expenses
Note 9. Income tax
Note 10. Cash and cash equivalents
Note 11. Trade and other receivables
Note 12. Inventories
Note 13. Contract assets
Note 14. Other current assets
Note 15. Property, plant and equipment
Note 16. Right-of-use assets
Note 17. Intangibles
Note 18. Trade and other payables
Note 19. Contract liabilities
Note 20. Borrowings
Note 21. Lease liabilities
Note 22. Provisions
Note 23. Issued capital
Note 24. Reserves
Note 25. Dividends
Note 26. Financial instruments
Note 27. Fair value measurement
Note 28. Remuneration of auditors
Note 29. Contingent liabilities
Note 30. Key management personnel disclosures
Note 31. Related party transactions
Note 32. Business combinations
Note 33. Interests in subsidiaries
Note 34. Earnings per share
Note 35. Parent entity information
Note 36. Reconciliation of loss after income tax to net cash from/(used in) operating activities
Note 37. Changes in liabilities arising from financing activities
Note 38. Share-based payments
Note 39. Events after the reporting period
Directors' declaration
Independent auditor's report to the members of Ai-Media Technologies Limited
Shareholder information
22
23
37
38
39
40
41
42
42
42
51
52
53
54
55
56
57
59
59
60
60
61
61
62
63
65
65
66
66
67
68
70
70
71
74
74
74
75
75
76
78
78
79
80
80
81
81
82
83
87
23
Ai-Media Technologies Limited
Directors' report
30 June 2022
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'Group') consisting of Ai-Media Technologies Limited (referred to hereafter as the 'Company' or 'parent entity') and the
entities it controlled at the end of, or during, the year ended 30 June 2022.
Directors
The following persons were directors of Ai-Media Technologies Limited during the whole of the financial year and up to the
date of this report, unless otherwise stated:
Deanne Weir - Non-Executive Director and Chair
Anthony Abrahams - Executive Director and Chief Executive Officer
John Martin - Non-Executive Director
Alison Loat - Non-Executive Director
Cheryl Hayman - Non-Executive Director (appointed on 14 March 2022)
Jonathan Pearce - Non-Executive Director (retired on 31 August 2021)
Principal activities
Ai-Media Technologies Limited (Ai-Media or Company) (ASX: AIM), is a global provider of technology-driven captioning,
transcription and translation products and services.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the Group after providing for income tax amounted to $4,923,715 (30 June 2021: $10,691,490).
Operations
A summary of the results for the year is as follows:
2022
$
2021
$
Change
$
Change
%
Revenue from operating activities
Earnings/(loss) before interest, taxation, depreciation and
amortisation (‘EBITDA’)
Loss after tax (expense)/benefit from ordinary activities
59,784,026 48,662,420 11,121,606
22.9%
1,100,574
(4,923,715)
(8,678,600)
(10,691,490)
9,779,174
5,767,775
112.7%
(53.9%)
The strengths of the technology and products introduced into the Group as part of the EEG acquisition has provided
significant impetus to the revenue growth. The legacy business continues its strong performance in the broadcast sector
where tailored solutions and a high degree of accuracy is required. Comparatively, there has been a decline in Live Enterprise
services, especially in the education sector, where free tools have gained market share particularly where accuracy is not a
major consideration.
COVID-19, initially, encouraged the adoption of teleconferencing as a core communications tool and growth in entry-level
revenue. This revenue has now reverted to alternate offerings resulting in a decline in the low-end offering. In contrast, the
adoption by Broadcasters of smart Automatic Speech Recognition ('ASR') software, such as Lexi, and its success in
parliaments and large corporates has ensured strong growth. Software solutions such as Lexi, Smart Lexi and virtual
encoders contributed to over 16% of the Group revenue during the year and the existing pipeline of clients indicates high
demand for technology-driven solutions.
23
24
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (‘AASBs’) and represents the
profit under AASBs adjusted for specific items. The directors consider EBITDA as the key financial measures of the Group.
The reconciliation of loss after income tax benefit to EBITDA is as follows.
Loss after income tax (expense)/benefit
Finance costs
Income tax expense/(benefit)
Interest income
Loss before interest and taxation (‘EBIT’)
Depreciation and amortisation expense
EBITDA
Consolidated
2022
$
2021
$
(4,923,715)
1,366,631
222,270
(17,285)
(10,691,490)
2,280,079
(3,553,057)
(22,124)
(3,352,099)
4,452,673
(11,986,592)
3,307,992
1,100,574
(8,678,600)
EBITDA for the Company was a profit of $1,100,574 (2021: loss of $8,678,600), showing significant progress in the Group's
performance compared to the previous year.
Liquidity
The consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2022 reflects a net
loss after income tax of $4,923,715 (2021: $10,691,490) and the consolidated statement of cash flows reflects net cash
inflows from operating activities of $1,893,490 (2021: outflows of $17,954,442). As at 30 June 2022, the consolidated
statement of financial position reflects a net asset position of $78,960,817 (2021: net asset of $78,997,066) and a net current
asset position of $16,444,315 (2021: net current asset of $18,811,512). The strong revenue growth along with a strong
balance sheet with minimal debt has the Group well positioned to pursue our growth agenda and take advantage of new
opportunities as they arise.
The directors have assessed that based on the Group’s position it is appropriate to prepare the financial report on a going
concern basis. For further information, refer to note 2.
Business risks
The following is a summary of material business risks that could adversely affect the Group's financial performance and
growth potential in future years and how the Group propose to mitigate such risks.
Macroeconomic risks
The Group’s financial performance can be impacted by current and future economic conditions which it cannot control, such
as increases in interest rates and inflation. The Group stays abreast of these conditions, focuses on its internal debtor controls
and diversifies its customer base to help manage these risks.
Recruitment and crowd sourcing
Whilst the labour market is showing some signs of loosening, vacancies overall remain hard to fill. Labour market tightness
coupled with inflationary pressures has resulted in a ~10% salary uplift on budgeted expectation for professional or highly
skilled vacancies. Tools, LinkedIn Recruiter, LinkedIn advertiser continue to outperform traditional labour advertising
avenues and further minimise the need to employ recruitment agency services.
Competitive market and changes to market trends
The Group operates in a highly competitive market. Innovation is constant and superior products that may be released to the
market could result in pricing pressures upon our product and result in unfavourable product positioning within the market.
The Group manages this risk through maintaining product development teams that are highly experienced and remain
abreast of the latest technological advances and implications for current and future products.
24
25
Ai-Media Technologies Limited
Directors' report
30 June 2022
Disruption to, or failure of, technology systems and software, including cybersecurity breaches
The risk of system disruption, either malicious or accidental is something that can never be completely mitigated against as
technology and methods of potential disruption are constantly changing. We manage this risk in diverse ways, including
utilising third parties to proactively review our environments and make recommendations for improvement, focusing on
monitoring environments so we can spot any changes as they happen (before causing noticeable disruption) and by making
sure we have backups and methods in place to reproduce environments from scratch in case the worst case scenario does
happen.
COVID 19
The Group continued to respond promptly and strategically to the ongoing and rapidly changing impact of COVID-19 related
risks. The Group is equipped to quickly adapt to changing public health regulations and has developed better ways to
continue operating in a COVID-safe manner including online sales. The winding back of Government stimulus across the
economy may impact future results.
Data protection and privacy laws
Data protection and privacy laws are being implemented and updated across many jurisdictions globally. This could be a risk
if we are not aware of the changes or not able to comply and therefore we need to make sure we are actively monitoring
changes. We look to minimise this risk by basing our data protection and privacy standards on the most robust jurisdictions
in order to aid in global compliance.
Significant changes in the state of affairs
On 4 January 2022, the Board approved the exercise of Ai-Media Inc's call option (pursuant to the Caption Access Share
Purchase Agreement) to purchase the remaining 51% of shares in Caption Access LLC from Bill Graham, for the previously
agreed price of USD100. (Ai-Media Inc owned 49% of Caption Access LLC shares as at 31 Dec 2021). This purchase was
made in conjunction with the agreed retirement of Bill Graham from Ai-Media, which was effective on 4 April 2022.
There were no other significant changes in the state of affairs of the Group during the financial year.
Matters subsequent to the end of the financial year
On 11 July 2022, the Company signed an agreement to defer USD$4,600,000 earn-out in respect to the purchase of EEG.
The amount of the earn-out has been agreed at USD$4,968,000, which is inclusive of additional simple interest of 8% per
annum over the 12 month period from 30 September 2022 to 29 September 2023 in respect of the earn-out amount
prescribed in the Purchase Agreement of USD$4,600,000.
No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
Likely developments and expected results of operations
The Group’s growth strategy is focused on exploiting its strengths as a global leader in the provision of high-quality live and
recorded captioning, transcription and translation products and services. Its technology platform combines artificial
intelligence and human expertise to deliver speech-to-text at the accuracy required in the rapidly evolving broadcast and
large enterprise markets. The key pillars of the Group’s growth strategy are:
●
●
●
●
●
●
drive growth of unified product offering in existing and new markets;
market standardized scalable global product portfolio solution;
focus on transitional sales of SaaS and Premium ASR in markets previously dominated by human captioning;
ongoing organic growth of existing markets and customers;
develop partnership opportunities and new sales channels; and
consider acquisition opportunities, particularly of technology to enhance products.
Environmental regulation
The Group is not subject to any significant environmental regulation under a law of Commonwealth or State law within all the
geographical locations the Group operate in.
25
26
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
Information on directors
Name:
Title:
Qualifications:
Experience and expertise:
Deanne Weir
Non-Executive Director and Chair
BA(Hons) LLB(Hons) LLM
Deanne has served as a director of Ai-Media since 2010, and became Chair in August
2013.
An entrepreneur, company director and philanthropist, Deanne previously spent 10
years at ASX listed company Austar United Communications as a senior executive,
including as General Counsel and Company Secretary. Deanne is also Chair of Seer
Data and Analytics, an Australian technology start-up
Deanne is passionate about community engagement and the power of story-telling to
help influence social change. Deanne was a long-term Board member and Deputy
Chair at Screen Australia and in 2017 was appointed Chair of the Sydney Film Festival.
Deanne is a Graduate of the Australian Institute of Company Directors.
Other current directorships:
No other listed entities
Former directorships (last 3 years): No other listed entities
Special responsibilities:
Interests in shares:
Board Chair, Member of RNC (Remuneration and Nominations Committee)
16,072,336 ordinary shares directly held
2,572,659 ordinary shares indirectly held
Name:
Title:
Qualifications:
Experience and expertise:
Anthony Abrahams
Co-Founder, Director and Chief Executive Officer
BCom (Hons). LLB (UNSW), MPhil. MBA (Oxford)
Tony co-founded Ai-Media in 2003. Tony served as a Director of Northcott Disability
Services from 2010 to 2018, and was recognised by the World Economic Forum as a
Young Global Leader in 2013.
In previous roles, Tony worked to establish the Oxford Internet Institute in 2001, while
attending the University of Oxford as a Rhodes Scholar. Tony has been a member of
the Australian Institute of Company Directors since 2006.
Other current directorships:
No other listed entities
Former directorships (last 3 years): No other listed entities
Chief Executive Officer
Special responsibilities:
27,889,898 ordinary shares indirectly held
Interests in shares:
26
27
Ai-Media Technologies Limited
Directors' report
30 June 2022
Name:
Title:
Qualifications:
Experience and expertise:
John Martin
Independent, Non-Executive Director
BA LLB (Hons)
John joined the board in 2010 and served as the company’s first Chairman until 2013.
He is an experienced company director and business executive having served as CEO
and director of ASX-listed Babcock & Brown Communities, Primelife and Regeneus.
John is a former corporate and executive partner of the law firm Allens where he
specialised in M&A, fundraising and corporate advisory. He is a Non-Executive Director
of Australian national law firm, Sparke Helmore; Sydney biotech company, Biopoint;
US internet services company, Lokket and Melbourne not-for-profit company for the
commercialisation of regenerative medicines, CCRM Australia.
John is a member of the Australian Institute of Company Directors.
Other current directorships:
Former directorships (last 3 years): Concentrated Leaders Fund Limited
Special responsibilities:
No other listed entities
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Chair of Audit and Risk Committee; Member of Remuneration and Nomination
Committee
20,235 ordinary shares directly held and 1,276,669 ordinary shares indirectly held
28,915 restricted share units
Alison Loat
Independent, Non-Executive Director
BAH, Queen’s University, Kingston Canada; MPP, Harvard Kennedy School
Alison joined the Board in 2018 and is the Managing Director, Sustainable Investing
and Innovation at OPTrust, a $25 billion Canadian public pension plan, where she leads
its ESG program and climate change strategy, and oversees an investment portfolio
focused at the intersection of sustainability and innovation.
Previously, Alison was the Senior Managing Director of FCLTGlobal where she worked
with asset owners, managers and companies to advance long-term investing. She’s
also worked at McKinsey & Company, a healthcare technology company and was on
the founding team of the MaRS Discovery District, a medical commercialization facility
in Toronto.
She has a deep commitment to public service. She co-founded and was the CEO of
the Samara Centre for Democracy and was a Senior Fellow and instructor at the
University of Toronto and the president of the Canadian Club of Toronto.
Alison is an Advisory Board member at the Max Bell School at McGill University, a
board director at the Centre for International Governance Innovation (CIGI) and a
governor of Ridley College. In addition to Ai-Media, she is also a board director at The
Logic, a privately held media company.
She received both the Queen’s Gold and Diamond Jubilee Medals for her service to
Canada and was named a World Economic Forum Young Global Leaders and one of
the WXN 100 Most Powerful Women in Canada. She holds a BA (Honours) from
Queen’s University and a Master of Public Policy (MPP) from the Harvard Kennedy
School.
Other current directorships:
No other listed entities
Former directorships (last 3 years): No other listed entities
Special responsibilities:
Interests in shares:
Interests in options:
Chair of RNC (Remuneration and Nominations Committee); Member of ARC (Audit and
Risk Committee)
270,235 ordinary shares directly held
28,915 restricted share units
27
28
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
Name:
Title:
Qualifications:
Experience and expertise:
Cheryl Hayman
Independent Non-Executive Director (appointed on 14 March 2022)
BCom (Mktg), FAICD, FGIA
Cheryl joined the board in March 2022 and has extensive experience working as an
independent Director across multiple sectors including ASX-listed companies as well
as industry bodies and not-for-profit organisations.
Her corporate experience encompasses a range of senior business leadership roles
with a focus on brand building, innovation and new product development, all from a
customer centric perspective. Cheryl has technology and digital strategy expertise and
her prior local and global marketing roles include Head of Marketing and Innovation at
Sunrice, George Weston Foods Ltd, Unilever Australia, NZ and UK, Yum Restaurants
Ltd and Who Weekly magazine. Cheryl is a Fellow of the Australian Institute of
Company Directors (AICD).
Other current directorships:
Former directorships (last 3 years): Shriro Holdings Ltd (ASX:SHM) and Clover Corporation (ASX:CLV)
Special responsibilities:
Beston Global Food Company (ASX: BFC) and HGL Limited (ASX: HGL)
Member of RNC (Remuneration and Nominations Committee); Member of ARC (Audit
and Risk Committee)
50,000 ordinary shares indirectly held
12,561 restricted share units
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Jonathan Pearce
Non-Executive Director (retired on 31 August 2021)
B Fin.; Graduate Diploma of App. Fin
Jonathan was appointed to the Board in January 2020. He has significant experience
in the finance industry and is a Portfolio Manager of the CVC Emerging Companies
Fund.
Prior to this, Jonathan was an Investment Manager at CVC Limited and has held senior
roles in a number of boutique investment and advisory houses.
Swoop Holdings Limited
Other current directorships:
Former directorships (last 3 years): None
Special responsibilities:
Interests in shares:
Member of ARC (Audit and Risk Committee)
512,980 ordinary shares directly held
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Name:
Title:
Experience and expertise:
Suzanne Sanossian
Company Secretary
Sue joined Ai-Media in 2011 and is responsible for assisting the Board and company
in meeting its fiduciary, legal, compliance and corporate governance obligations. She
has held roles within former ASX-listed companies including Austar United
Communications Limited where she was part of the corporate development and legal
affairs team, and at Lake Technology Limited and Excel Coal Limited where she held
senior administrative roles. Sue is a pivotal point of contact for the Board, investors,
senior executives, staff and industry peers, and has led AIM’s People and Culture
team during her tenure.
She is a Member of the Australian Institute of Company Directors and holds a
Certificate in Governance Practice from the Governance Institute of Australia. Sue
served as a Director on the inaugural Board of the Global Alliance of Speech to Text
Captioning, a US-based non-profit corporation which is dedicated to universal
accessibility to the spoken word via all forms of captioning.
28
29
Ai-Media Technologies Limited
Directors' report
30 June 2022
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the
year ended 30 June 2022, and the number of meetings attended by each director were:
Full Board
Attended
Held
Audit and Risk Committee
Attended
Held
Remuneration and
Nomination Committee
Attended
Held
Deanne Weir
Anthony Abrahams
John Martin
Alison Loat
Cheryl Hayman (appointed on
14 March 2022)
Jonathan Pearce (retired on 31
August 2021)
10
10
10
10
3
2
10
10
10
10
3
2
6
6
6
6
1
2
6
6
6
6
1
2
5
5
5
5
2
-
5
5
5
5
3
-
Held: represents the number of meetings held during the time the director held office or was a member of the relevant
committee.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the Group, in accordance
with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the Group's executive reward framework is to ensure reward for performance is competitive and appropriate
for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation
of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board
of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance
practices:
●
●
●
●
competitiveness and reasonableness;
acceptability to shareholders;
performance linkage / alignment of executive compensation; and
transparency.
The Remuneration and Nomination Committee is responsible for determining and reviewing remuneration arrangements for
its directors and executives. The performance of the Group depends on the quality of its directors and executives. The
remuneration philosophy is to attract, motivate and retain high performance and high quality personnel.
The Remuneration and Nomination Committee has structured an executive remuneration framework that is market
competitive and complementary to the reward strategy of the Group.
The reward framework is designed to align executive reward to shareholders' interests. The Board has considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design;
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value; and
attracting and retaining high calibre executives.
●
29
30
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience;
reflecting competitive reward for contribution to growth in shareholder wealth; and
providing a clear structure for earning rewards.
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors' remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Remuneration and Nomination Committee. The Remuneration and
Nomination Committee may, from time to time, receive advice from independent remuneration consultants to ensure non-
executive directors' fees and payments are appropriate and in line with the market. The chair's fees are determined
independently to the fees of other non-executive directors based on comparative roles in the external market. The chair is
not present at any discussions relating to the determination of her own remuneration. As part of their remuneration package,
eligible non-executive directors are granted up to $25,000 worth of restricted share units per year, which vest on a quarterly
basis and are automatically exercised at the end of the financial year.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 9 August 2020, where the shareholders
approved a maximum annual aggregate remuneration of $500,000.
Executive remuneration
The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which
has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits;
short-term performance incentives;
share-based payments; and
other remuneration such as superannuation and long service leave.
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Remuneration and Nomination Committee based on individual and business unit performance, the overall performance of
the Group and comparable market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the Group and provides additional value to the executive.
The short-term incentives ('STI') program includes salaries, annual leave and other short term incentive payments and is
designed to align the targets of the business units with the performance hurdles of executives. STI payments are granted to
executives based on specific annual targets and key performance indicators ('KPI's') being achieved. KPI's include profit
contribution, customer satisfaction, leadership contribution and product management.
The long-term incentives ('LTI') include long service leave and share-based payments. Shares are awarded to executives
over a period of three years based on long-term incentive measures. These include increase in shareholders' value relative
to the entire market and the increase compared to the Group's direct competitors. The Remuneration and Nomination
Committee reviewed the long-term equity-linked performance incentives for executives during the financial year.
Under the LTI, eligible key management personnel may be given restricted share units (‘RSUs') which may be subject to
vesting conditions set by the Board.
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is directly linked to the performance of the Group. A portion of cash bonus and incentive
payments are dependent on defined earnings per share targets being met. The remaining portion of the cash bonus and
incentive payments are at the discretion of the Remuneration and Nomination Committee. Refer to the section 'Additional
information' below for details of the earnings and total shareholders return for the last five years.
30
31
Ai-Media Technologies Limited
Directors' report
30 June 2022
The Remuneration and Nomination Committee is of the opinion that the continued improved results can be attributed in part
to the adoption of performance based compensation and is satisfied that this improvement will continue to increase
shareholder wealth if maintained over the coming years.
Use of remuneration consultants
During the financial year ended 30 June 2022, the Group did not engage the use of remuneration consultants, to review its
existing remuneration policies and provide recommendations on how to improve both the STI and LTI programs for future
financial years.
Voting and comments made at the Company's 30 June 2021 Annual General Meeting ('AGM')
At the 12 November 2021 AGM, 98.34% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2021. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
The key management personnel of the Group consisted of the following directors of Ai-Media Technologies Limited:
●
●
●
●
●
●
Deanne Weir - Chair
Anthony Abrahams - Chief Executive Officer
John Martin - Non-Executive Director
Alison Loat - Non-Executive Director
Cheryl Hayman - Non-Executive Director (appointed on 14 March 2022)
Jonathan Pearce - Non-Executive Director (retired on 31 August 2021)
And the following persons:
●
●
John Bird - Chief Financial Officer (appointed on 15 March 2021)
Patrick Fok - Chief Financial Officer (resigned on 31 December 2020)
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
91,324
59,091
68,801
17,727
9,795
321,876
277,802
846,416
-
-
-
-
-
-
-
-
-
-
-
-
-
9,132
5,909
3,448
1,773
980
-
-
-
-
-
-
25,000
25,000
7,397
4,247
100,456
90,000
97,249
26,897
15,022
5,340
15,320
4,135
-
346,671
14,034
19,374
23,568
60,130
-
4,135
-
61,644
315,404
991,699
2022
Non-Executive Directors:
Deanne Weir
John Martin
Alison Loat
Cheryl Hayman*
Jonathan Pearce**
Executive Directors:
Anthony Abrahams
Other Key Management
Personnel:
John Bird
*
**
Remuneration disclosed is for the period from appointment to 30 June 2022.
Remuneration disclosed is from 1 July 2021 to the date of cessation of employment/appointment.
31
32
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
monetary
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
-
91,324
-
65,000
62,405
65,000
-
-
-
-
46,910
-
-
-
-
-
-
-
-
28,945
-
21,694
585
-
-
-
-
-
-
-
-
13,333
-
34,355
25,000
25,000
-
133,602
-
121,049
134,900
90,000
331,241
-
-
11,422
4,715
-
347,378
89,456
244,076
948,502
-
-
46,910
-
-
-
7,678
7,510
77,834
-
-
4,715
-
97,134
325,460
171,562 1,249,523
73,874
2021
Non-Executive Directors:
Deanne Weir
John Martin
Alison Loat
Jonathan Pearce
Executive Directors:
Anthony Abrahams
Other Key Management
Personnel:
John Bird*
Patrick Fok**
*
**
Remuneration disclosed is for the period from appointment to 30 June 2021.
Remuneration disclosed is from 1 July 2020 to the date of cessation of employment.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Deanne Weir
John Martin
Alison Loat
Cheryl Hayman
Jonathan Pearce
Executive Directors:
Anthony Abrahams
Other Key Management
Personnel:
John Bird
Patrick Fok
Fixed remuneration
2022
2021
At risk - STI
At risk - LTI
2022*
2021
2022
2021
100%
72%
74%
72%
72%
90%
72%
46%
-
72%
100%
100%
100%
-
100%
77%
-
28%
26%
28%
28%
-
-
-
10%
28%
54%
-
28%
-
-
23%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
*
At risk - STI relates to the share based payments, equity settled.
32
33
Ai-Media Technologies Limited
Directors' report
30 June 2022
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Anthony Abrahams
Chief Executive Officer
Australia
1 July 2020
Ongoing - no fixed minimum term
Annual fees of $130,593 including superannuation
Anthony Abrahams
Chief Executive Officer
Canada
19 April 2018
Ongoing - no fixed minimum term
Annual fees of CAD186,576
John Bird
Chief Financial Officer
15 March 2021
Ongoing - no fixed minimum term
Annual fees of $301,370 including superannuation
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
Details of ordinary issued to directors and other key management personnel as part of compensation during the year ended
30 June 2022 are set out below:
Name
Date
Shares
Issue price
$
John Martin
Alison Loat
Jonathan Pearce
30 September 2021*
30 September 2021*
30 September 2021*
26 October 2021
20,235
20,235
20,235
4,912
$1.23
$1.23
$1.23
$0.86
25,000
25,000
25,000
4,247
*
These shares were issued during the year ended 30 June 2022 but were accrued as at 30 June 2021.
Restricted Share Units ('RSUs')
Details of RSUs granted to directors and other key management personnel as part of compensation during the year ended
30 June 2022 are set out below:
Name
John Martin
Alison Loat
Cheryl Hayman
John Bird*
Vesting and exercisable date
RSUs
Price
$
30 June 2022
30 June 2022
30 June 2022
30 June 2022
28,915
28,915
12,561
520,472
$0.86
$0.86
$0.59
$0.00
25,000
25,000
7,397
-
The RSUs for John Martin and Alison Loat were granted on 30 Sep 2021 and for Cheryl Hayman on 14 Mar 2022. The
underlying shares were issued on 7 July 2022.
*
These RSUs did not meet the vesting conditions, performance and RTSR hurdles and have therefore lapsed. No
expenses in relation to the RSUs have been recorded in the financial year ended 30 June 2022.
There were no options over ordinary shares granted to directors and other key management personnel as part of
compensation during the year ended 30 June 2022.
33
34
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
Additional information
The earnings of the Group for the five years to 30 June 2022 are summarised below:
2022
$
2021
$
2020
$
2019
$
2018
$
Sales revenue
EBITDA
Profit/(loss) after income tax
59,784,026 48,662,420 25,423,090 18,339,127 16,078,623
1,758,968
291,476
(8,678,600)
(10,691,490)
(10,048,332)
(12,741,152)
(2,506,516)
(3,882,599)
1,100,574
(4,923,715)
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key management
personnel of the Group, including their personally related parties, is set out below:
Ordinary shares
Deanne Weir
Anthony Abrahams
John Martin
Alison Loat
Cheryl Hayman
Jonathan Pearce
John Bird
Balance at
the start of
the year
18,644,995
27,889,898
1,276,669
250,000
-
487,833
-
48,549,395
Received
as part of
remuneration Additions
Disposals/
other
Balance at
the end of
the year
-
-
20,235
20,235
-
25,147
-
65,617
-
-
-
-
50,000
-
-
50,000
- 18,644,995
- 27,889,898
1,296,904
-
270,235
-
50,000
-
512,980
-
-
-
- 48,665,012
Option holding
There were no options over ordinary shares in the Company held during the financial year by each director and other
members of key management personnel of the Group.
RSU holding
The number of RSUs over ordinary shares in the Company held during the financial year by each director and other members
of key management personnel of the Group, including their personally related parties, is set out below:
RSUs
John Martin
Alison Loat
Cheryl Hayman
John Bird
Balance at
the start of
the year
Granted
Vested
Issued
Expired/
forfeited/
other
Balance at
the end of
the year
20,235
20,235
-
-
28,915
28,915
12,561
520,472
28,915
28,915
12,561
-
(20,235)
(20,235)
-
-
-
-
-
(520,472)
28,915
28,915
12,561
-
40,470
590,863
70,391
(40,470)
(520,472)
70,391
This concludes the remuneration report, which has been audited.
Shares under option and restricted share units
There were no unissued ordinary shares of Ai-Media Technologies Limited under option outstanding at the date of this report.
34
35
Ai-Media Technologies Limited
Directors' report
30 June 2022
Shares issued on the exercise of options and restricted share units
The following ordinary shares of Ai-Media Technologies Limited were issued during the year ended 30 June 2022 on the
exercise of RSUs granted:
Date RSU granted
30 June 2021
31 August 2021
20 December 2021
Exercise
price
Number of
shares issued
$1.23
$0.86
$1.23
60,705
4,912
420,658
486,275
Indemnity and insurance of officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 28 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 28 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-
making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards.
●
Officers of the Company who are former partners of Deloitte Touche Tohmatsu
There are no officers of the Company who are former partners of Deloitte Touche Tohmatsu.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
35
36
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' report
30 June 2022
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Anthony Abrahams
Director and Chief Executive Officer
29 August 2022
Sydney
36
37
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Grosvenor Place
225 George Street
Sydney, NSW, 2000
Australia
Phone: +61 2 9322 7000
www.deloitte.com.au
29 August 2022
The Board of Directors Ai‐
Media Technologies Limited
Level 1, 103 Miller Street
North Sydney
NSW 2060
Dear Board Members
Auditor’s Independence Declaration to Ai‐Media Technologies Limited
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the Board of Directors of Ai‐Media Technologies Limited and its subsidiaries.
As lead audit partner for the audit of the financial report of Ai‐Media Technologies Limited for the year ended 30
June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:
• The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• Any applicable code of professional conduct in relation to the audit.
Yours faithfully
DELOITTE TOUCHE TOHMATSU
Joshua Tanchel
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte Organisation
37
38
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Revenue
Other income
Interest revenue calculated using the effective interest method
Expenses
Cost of sales
Employee benefits expense
Depreciation and amortisation expense
Impairment of receivables
Professional and consulting costs
Business development costs
Networking and information technology costs
Other employment costs
Office expenses
Initial public offering ('IPO') listing expense
Other expenses
Finance costs
Loss before income tax (expense)/benefit
Income tax (expense)/benefit
Consolidated
Note
2022
$
2021
$
6
59,784,026 48,662,420
7
8
11
8
9
313,246
17,285
516,667
22,124
(26,915,963)
(21,150,343)
(4,452,673)
(176,422)
(3,293,486)
(1,457,846)
(3,100,333)
(822,138)
(598,180)
-
(1,481,987)
(1,366,631)
(28,791,802)
(15,105,854)
(3,307,992)
(83,923)
(5,124,447)
(708,866)
(2,290,979)
(534,663)
(449,637)
(3,051,255)
(1,716,261)
(2,280,079)
(4,701,445)
(14,244,547)
(222,270)
3,553,057
Loss after income tax (expense)/benefit for the year attributable to the owners
of Ai-Media Technologies Limited
(4,923,715)
(10,691,490)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income/(loss) for the year attributable to the owners of
Ai-Media Technologies Limited
Basic loss per share
Diluted loss per share
5,406,060
1,099,123
5,406,060
1,099,123
482,345
(9,592,367)
Cents
Cents
34
34
(2.36)
(2.36)
(7.52)
(7.52)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
38
Ai-Media Technologies Limited
Consolidated statement of financial position
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangibles
Deferred tax assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Income tax
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Deferred tax
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
39
Consolidated
Note
2022
$
2021
Restated
$
10
11
13
12
14
15
16
17
9
15,184,270
13,605,464
247,403
648,029
272,076
29,957,242
17,864,220
13,195,519
54,299
427,108
272,076
31,813,222
4,185,831
634,918
4,125,959
567,627
60,332,590 56,214,385
7,061,811
67,969,782
7,537,506
72,690,845
102,648,087
99,783,004
18
19
20
21
9
22
6,157,589
3,306,407
145,253
267,570
22,114
3,613,994
7,057,586
1,697,030
263,993
609,446
-
3,373,655
13,512,927 13,001,710
21
9
22
331,811
2,361,141
7,481,391
10,174,343
259,198
2,105,043
5,419,987
7,784,228
23,687,270 20,785,938
78,960,817 78,997,066
23
24
109,968,446 110,566,210
1,151,260
(32,720,404)
7,195,693
(38,203,322)
78,960,817 78,997,066
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
39
40
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Consolidated statement of changes in equity
For the year ended 30 June 2022
Consolidated
Balance at 1 July 2020
Loss after income tax benefit for the year
Other comprehensive income for the year, net of tax
Total comprehensive income/(loss) for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 23)
Exercise/cancellation of share options
Conversion of convertible notes
Deferred consideration
Share-based payments
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
8,980,031
8,671,609
(26,448,241)
(8,796,601)
-
-
-
-
(10,691,490)
1,099,123
-
(10,691,490)
1,099,123
1,099,123
(10,691,490)
(9,592,367)
79,193,798
4,501,243
15,033,993
2,857,145
-
-
(8,694,472)
-
-
75,000
4,419,327
- 79,193,798
226,098
- 15,033,993
2,857,145
-
75,000
-
Balance at 30 June 2021
110,566,210
1,151,260
(32,720,404) 78,997,066
Consolidated
Balance at 1 July 2021
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
110,566,210
1,151,260
(32,720,404) 78,997,066
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income/(loss) for the year
-
-
-
-
(4,923,715)
5,406,060
-
(4,923,715)
5,406,060
5,406,060
(4,923,715)
482,345
Transactions with owners in their capacity as owners:
Share-based payments (note 38)
Share buy-back (note 23)
Transaction costs ( note 23)
Conversion of Restricted Stock/Share Units ( note 23, note 24)
Transfer from reserves to accumulated losses
-
(1,164,006)
(30,414)
596,656
-
307,994
-
-
(228,824)
559,203
-
-
-
-
(559,203)
307,994
(1,164,006)
(30,414)
367,832
-
Balance at 30 June 2022
109,968,446
7,195,693
(38,203,322) 78,960,817
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
40
Ai-Media Technologies Limited
Consolidated statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Net cash from operating activities (inclusive of GST)
Non-recurring EEG associated acquisition costs
Interest received
Other revenue
Interest and other finance costs paid
41
Consolidated
Note
2022
$
2021
$
63,580,242 47,968,036
(65,975,619)
(59,815,417)
3,764,825
(1,600,718)
17,285
23,910
(311,812)
(18,007,583)
-
22,124
516,667
(485,650)
Net cash from/(used in) operating activities
36
1,893,490
(17,954,442)
Cash flows from investing activities
Payment for purchase of business, net of cash acquired
Payment for expenses relating to acquisitions
Payment of deferred consideration
Payments for property, plant and equipment
Payments for intangibles
32
15
17
-
(244,282)
-
(525,428)
(1,970,743)
(23,183,595)
-
(2,707,940)
(741,536)
(2,165,314)
Net cash used in investing activities
(2,740,453)
(28,798,385)
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Payments for share buy-backs
Proceeds from/(repayments of) bank and other loans
Proceeds from/(repayments of) shareholder loans
Repayments of related party loans
Repayment of lease liabilities
Net cash (used in)/from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
23
23
23
37
37
37
37
-
(59,391)
(1,164,006)
-
-
(303,993)
(788,777)
70,202,785
(4,313,705)
-
(787,192)
(2,413,918)
(248,416)
(922,014)
(2,316,167) 61,517,540
(3,163,130) 14,764,713
2,994,171
105,336
17,864,220
483,180
Cash and cash equivalents at the end of the financial year
10
15,184,270 17,864,220
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
41
42
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 1. General information
On 29 June 2021, shareholders approved the change of the Company's name from Access Innovation Holdings Limited to
Ai-Media Technologies Limited. The change of name was registered by Australian Securities and Investments Commission
on 1 July 2021.
The financial statements cover Ai-Media Technologies Limited (formerly known as Access Innovation Holdings Limited) as
a Group consisting of Ai-Media Technologies Limited ('Company' or 'parent entity') and the entities it controlled at the end of,
or during, the year (referred to in these financial statements as the 'Group'). The financial statements are presented in
Australian dollars, which is Ai-Media Technologies Limited's functional and presentation currency.
Ai-Media Technologies Limited (formerly known as Access Innovation Holdings Limited) is a listed public company limited
by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:
Registered office
Level 6
277 William Street
Melbourne VIC 3000
Principal place of business
Level 1
103 Miller Street
North Sydney NSW 2060
A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is
not part of the financial statements.
On 15 September 2020, the Company was listed on the Australian Securities Exchange (‘ASX’) with the code 'AIM'.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 August 2022. The
directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
The financial report has been prepared on the going concern basis which contemplates the continuity of normal business
activities and the realisation of assets and settlement of liabilities in the ordinary course of business and assumes the Group
will have sufficient cash resources to pay their debts as and when they become due and payable for at least 12 months from
the date of signing the financial report.
The consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2022 reflects a net
loss after income tax of $4,923,715 (30 June 2021: $10,691,490) and the consolidated statement of cash flows reflects net
cash inflows from operating activities of $1,893,490 ( 30 June 2021: outflows of $17,954,442 ). As at 30 June 2022, the
consolidated statement of financial position reflects a net asset position of $78,960,817 ( 30 June 2021: net asset of
$78,997,066) and a net current asset position of $16,444,315 (30 June 2021: net current asset of $ 18,811,512). The losses
are a result of the strategic decision taken by the Company to accelerate its expansion to take advantage of the growth
opportunity.
Based upon the growth of the business achieved to date, sufficient cash reserves at reporting date and after reviewing
forecasts and projections prepared for the business, the directors are confident that it is appropriate to prepare the financial
statements on the going concern basis.
42
43
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only.
Supplementary information about the parent entity is disclosed in note 35.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Ai-Media Technologies
Limited as at 30 June 2022 and the results of all subsidiaries for the year then ended.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to
the Group. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by
the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises
the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in
profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
Foreign currency transactions
Foreign currency transactions are translated into the Company's functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
43
44
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange
for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a
customer; identifies the performance obligations in the contract; determines the transaction price which takes into account
estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and
recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer
of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration
is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues
until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject
to the constraining principle are recognised as a refund liability. During the year, variable consideration comprised of
immaterial discounts to certain customers.
Revenue from services
Revenue from a contract to provide services is recognised over time for all live captioning, as customers simultaneously
receive and consume captioning services as live captioned events occur. All recorded captioning is recognised at a point in
time, at such time that the customers gains control of and derives the benefits from the completed captioned medium(s)
produced and incurs the obligation to pay for completed captioning. Revenue from services primarily have payment terms of
30-60 days.
Hardware
Revenue from a contract to provide goods (computer hardware, parts, and hardware rentals) are recognized based on the
Incoterm Ex works which is a shipping arrangement where the seller makes product available for pick up at a specific location
and the buyer pays for the transport costs. The goods are picked up for delivery and loaded into the carrier’s vehicle which
is when the title; risks and rewards pass from the seller to the buyer, and it is when the company invoices the client.
Software as a Service & Cloud Services (IaaS & PaaS)
Software as a service ('SaaS') and Cloud services also known as Infrastructure as a Service ('IaaS') and Platform as a
Service ('PaaS') are electronically delivered software that are categorized as single contract for services or multiple
deliverable arrangements depending on the term of the license or subscription. Revenue is recognised proportionately over
the term of the license or subscription agreement which is when the stand-alone performance obligation(s) are satisfied.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established. Other income is
recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for
transferring goods or services to a customer.
44
45
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Grant income
Grants from the government are recognised at their fair value when there is reasonable assurance that the grant will be
received and that the Group will comply with all attached conditions. Government grants relating to costs are deferred and
recognised in profit or loss as other income over the periods necessary to match them with the costs that they are intended
to compensate.
Cost of sales
Cost of sales includes both direct and indirect labour costs and other costs directly attributable to the generation of revenue.
Contract assets and liabilities
AASB 15 ‘Revenue from Contracts with Customers’ uses the terms ‘contract asset’ and ‘contract liability’ to describe what is
commonly known as ‘accrued revenue’ and ‘deferred revenue’. Contract assets represent the Group’s right to consideration
for services provided to customers for which the Group’s right remains conditional on something other than the passage of
time. Contract liabilities arise where payment is received prior to work being performed. Contract assets and contract liabilities
are recognised and measured in accordance with this accounting policy.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Ai-Media Technologies Limited (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group
continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the 'separate
taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the tax
consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax
consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the
intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a
contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
45
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AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Research and development ('R&D') grant
The Group has exceeded the $20 million ATO threshold to claim the refundable R&D tax credit and accounts for the
concession as part of its calculation of income tax expense/benefit for the financial year.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses.
Contract receivables represent receivables in respect of which the Group’s right to consideration is unconditional subject
only to the passage of time. Contract receivables are non-derivative financial assets accounted for in accordance with the
Group’s accounting policy for non-derivative financial assets for expected credit losses. Trade receivables are generally due
for settlement within 30-60 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Inventories
Finished goods are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises of purchase
and delivery costs, net of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Buildings
Leasehold improvements
Plant and equipment
30 years
Over the lease term
5 to 10 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
46
47
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful
life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the
lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for
any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms
of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as
incurred.
Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at
the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible
assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising
from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying
amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in
the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or
period.
Goodwill
Goodwill arises on the acquisition of a business and is carried at cost less accumulated impairment losses. Impairment losses
on goodwill are taken to profit or loss and are not subsequently reversed.
Development
Development costs are capitalised when: it is probable that the project will be a success considering its commercial and
technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the
development; and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis
over the period of their expected benefit, being their finite life of 4 years.
Intellectual property
Significant costs associated with intellectual property are deferred and amortised on a straight-line basis over the period of
its expected benefit, being its finite life, which varies from 3 to 5 years.
Brand name and trademarks
Brand name and trademarks arise on the acquisition of a business and are carried at cost less accumulated impairment
losses. Brand name and trademarks are assessed to have indefinite lives as there is no indication that the useful life of the
asset will end in the reasonably foreseeable future and there is no way to reliably determine when the assets will cease
having economic value.
Customer contracts
Customer contracts acquired in a business combination are amortised on a straight-line basis over the period of their
expected benefit, being their finite life of 5 - 10 years.
47
48
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Software
Significant costs associated with software are deferred and amortised on a straight-line basis over the period of its expected
benefit, being its finite life, which varies from 3 to 7 years.
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-
financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected
to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or
a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured
if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual
guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset
is fully written down.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is
probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of
money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision
resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
48
49
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured as the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on high quality
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Derivative financial instruments
Embedded derivative
Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic
characteristics and risks are not closely related to those of the host contracts and the host contracts are not classified as fair
value through profit or loss with such gains or losses presented in finance costs. These embedded derivatives are measured
at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change in
the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a
financial instrument out of the fair value through profit or loss category.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and
best use. Valuation techniques used to measure fair value are those that are appropriate in the circumstances and which
maximise the use of relevant observable inputs and minimise the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers
between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where
applicable, with external sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments
or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest
in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value
or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit
or loss.
49
50
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the Group's operating or
accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the Group remeasures its previously held equity interest in the
acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is
recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest
in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the
acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value
of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly
in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement
of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's
previously held equity interest in the acquirer.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Ai-Media Technologies Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming conversion of all dilutive potential
ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the Group for the annual reporting period ended 30 June 2022. The Group has assessed
that there will be no significant impact on adoption of these new or amended Accounting Standards and Interpretations. The
new or amended Accounting Standards and Interpretations, most relevant to the Group, are set out below.
50
51
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
AASB 2020-1 Amendments to AASs – Classification of Liabilities as Current or Non-current
These amendments are applicable for annual reporting periods beginning on or after 1 January 2023. These amendments
to AASB 101 Presentation of Financial Statements clarify the requirements for classifying liabilities as current or non-current.
The amendments specify that the conditions which exist at the end of the reporting period are those which will be used to
determine if a right to defer settlement of a liability exists. These amendments are applied retrospectively. Earlier application
is permitted.
AASB 2021-2 Amendments to AASB 108 – Definition of Accounting Estimates
These amendments are applicable for annual reporting periods beginning on or after 1 January 2023. These amendments
to AASB 108 clarify the definition of an accounting estimate, making it easier to differentiate it from an accounting policy. The
distinction is necessary as their treatment and disclosure requirements are different. Critically, a change in an accounting
estimate is applied prospectively whereas a change in an accounting policy is generally applied retrospectively. The new
definition states that ‘Accounting estimates are monetary amounts in financial statements that are subject to measurement
uncertainty. The amendments are applied prospectively. Earlier application is permitted.
AASB 2021-3 Amendments to AASs – Covid-19-Related Rent Concessions beyond 30 June 2021
These amendments are applicable for annual reporting periods beginning on or after 1 April 2021. These amendments to
AASB 16 Leases are made to extend the availability of the practical expedient to not account for covid-19-related rent
concessions as lease modifications by one year. Provided all other conditions are met, this expedient can be applied to rent
concessions that reduce only lease payments originally due on or before 30 June 2022. The amendment to AASB 16 is
applied retrospectively with the cumulative effect of initial application recognised as an adjustment to the opening balance of
retained earnings or other component of equity, as appropriate, at the beginning of the annual reporting period in which the
lessee first applies the amendment. Earlier application of the amendments is permitted.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances.
Judgement has been exercised in considering the impacts that the COVID-19 pandemic has had, or may have, on the Group
based on known information. This consideration extends to the nature of the products and services offered, customers,
supply chain, staffing and geographic regions in which the Group operates. Other than as addressed in specific notes, there
does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties
with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a
result of the COVID-19 pandemic
The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
(refer to the respective notes) within the next financial year are discussed below.
Best estimate judgements on present obligations
The amount recognised as a provision shall be the best estimate of the expenditure required to settle the present obligation
at the end of the reporting period. Management take into account the probability weighting of the most likely outcome when
recognising provisions which involves key judgements.
Estimation of useful lives of assets
The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant
and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations
or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously
estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written
down.
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52
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Goodwill and other indefinite life intangible assets
The Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill
and other indefinite life intangible assets have suffered any impairment in accordance with the accounting policy stated in
note 2.
Recovery of deferred tax assets
Deferred tax assets are recognised for tax losses and deductible temporary differences only if the Group considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the
likely timing and the level of future taxable profits, together with future tax planning strategies.
Business combinations
The Group makes judgements and estimates in relation to the fair value allocation of the purchase price. The amount of
goodwill initially recognised as a result of a business combination is dependent on the allocation of the purchase price to the
fair value of the identifiable assets acquired and the liabilities assumed. The determination of the fair value of the assets and
liabilities is based, to a considerable extent, on management’s judgement. Allocation of the purchase price affects the results
of the Group as finite lived intangible assets are amortised, whereas indefinite lived intangible assets, including goodwill, are
not amortised and could result in differing amortisation charges based on the allocation to indefinite lived and finite lived
intangible assets.
Note 4. Restatement of comparatives
Business combination acquisition adjustment
(a) During the current financial year management have again considered the terms and conditions attached to the
Restricted Stock Unit (“RSU”) plan that was put in place as part of the acquisition of ACS in May 2020. It has now been
determined that that accounting standards required the entity to recognise the USD 1,000,000 (AUD 1,456,876) of
RSUs as initially contingent consideration prior to the IPO on 15 September 2020 and then deferred consideration after
the IPO date and hence an increase to the goodwill of the acquisition by USD 1,000,000 (AUD 1,456,876). The
exchange rate as at the original acquisition date of 0.6864 has been used and retranslated at the 30 June 2021 rate of
0.7518. There was no effect on the net assets at the beginning of the comparative period which is on 1 July 2020. The
effect on the statement of financial position as of 30 June 2021 is presented below. There were no adjustments made
on the statement of profit or loss and other comprehensive income for the year ended 30 June 2021.
(b) The Group adjusted the contingent consideration on the purchase of EEG as disclosed in note 32. The change to the
Share Purchase Agreement ('SPA') was to provide clarity on the Earn-Out calculation. The Earn-Out calculation was
not fully finalised at the acquisition date and subsequently agreed with the vendor on the calculation. The effect on the
statement of financial position as of 30 June 2021 is presented below. There were no adjustments made on the
statement of profit or loss and other comprehensive income for the year ended 30 June 2021 and on the statement of
financial position at the beginning of the comparative period which is on 1 July 2020.
Statement of financial position at the end of the earliest comparative period
Extract
Assets
Non-current assets
Intangibles
Consolidated
2021
Reported
$
Adjustment
(a)
$
Adjustment
(b)
$
2021
Restated
$
54,176,500
1,330,141
707,744 56,214,385
Total non-current assets
65,931,897
1,330,141
707,744 67,969,782
Total assets
97,745,119
1,330,141
707,744 99,783,004
52
53
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 4. Restatement of comparatives (continued)
Liabilities
Provisions-current
Provisions-non-current
Total liabilities
Net assets
Net assets
Note 5. Operating segments
699,479
1,330,141
-
2,029,620
4,346,060
-
707,744
5,053,804
18,748,053
1,330,141
707,744 20,785,938
78,997,066
-
- 78,997,066
Identification of reportable operating segments
The Group is organised into 3 operating segments based on geographical locations: Australia and New Zealand ('ANZ'),
North America (which includes Canada and United States of America), and Rest of the world ('ROW') (which includes United
Kingdom, Singapore and Malaysia). These operating segments are based on the internal reports that are reviewed and used
by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance
and in determining the allocation of resources. There is no aggregation of operating segments.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted
for internal reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
The CODM does not regularly review segment assets and segment liabilities. Refer to statement of financial position for
assets and liabilities.
Major customers
During the year 30 June 2022, there were no customers exceeding 10% of the Group's revenue (2021: one customer
contributed approximately 10% of the Group's revenue).
Operating segment information
Consolidated - 2022
Revenue
Sales to external customers
Other revenue
Total revenue
EBITDA
Depreciation and amortisation
Interest revenue
Finance costs
Loss before income tax expense
Income tax expense
Loss after income tax expense
ANZ
$
North
America
$
ROW
$
Corporate
$
Total
$
20,050,877 32,559,387
289,336
20,074,787 32,848,723
23,910
7,173,762
-
7,173,762
- 59,784,026
-
313,246
- 60,097,272
7,407,859
9,820,838
733,087
(16,861,210)
1,100,574
(4,452,673)
17,285
(1,366,631)
(4,701,445)
(222,270)
(4,923,715)
53
54
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 5. Operating segments (continued)
Consolidated - 2021
Revenue
Sales to external customers
Other revenue
Total revenue
EBITDA
Depreciation and amortisation
Interest revenue
Finance costs
Loss before income tax benefit
Income tax benefit
Loss after income tax benefit
Note 6. Revenue
ANZ
$
North
America
$
ROW
$
Corporate
$
Total
$
18,684,055 23,001,026
64,334
19,109,941 23,065,360
425,886
6,977,339
26,447
7,003,786
- 48,662,420
-
516,667
- 49,179,087
7,548,546
1,413,067
1,217,693
(18,857,906)
(8,678,600)
(3,307,992)
22,124
(2,280,079)
(14,244,547)
3,553,057
(10,691,490)
Revenue
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Major product lines
Broadcast*
Non-broadcast*
Timing of revenue recognition
Goods and services transferred at a point in time
Services transferred over time
Consolidated
2022
$
2021
$
59,784,026 48,662,420
Consolidated
2022
$
2021
$
28,531,300 17,922,123
31,252,726 30,740,297
59,784,026 48,662,420
17,535,853 12,090,742
42,248,173 36,571,678
59,784,026 48,662,420
*
Broadcast revenue includes services provided to broadcasters, including captioning live, sporting events and recorded
content. Non-broadcast revenue includes services provided to enterprise and convention (corporate, governments and
universities) customers.
54
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 7. Other income
Other revenue
55
Consolidated
2022
$
2021
$
313,246
516,667
Other revenue relates to IT infrastructure services provided on an ad-hoc and non-recurring basis, clients quality services
bonuses, and the release of deferred consideration relating to the acquisition of Alternative Communication Services LLC.
During the year the Group has not received any COVID-19 related payments from governments. In 2021, the Group received
payments from various governments amounting to $100,000 as part of their boosting cash flow for small medium businesses
and employers due to the impacts of the COVID-19 pandemic. These amounts have been recognised as government grants
and recognised as income once there is reasonable assurance the Group will comply with any conditions attached.
55
56
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 8. Expenses
Loss before income tax includes the following specific expenses:
Depreciation
Buildings
Leasehold improvements
Plant and equipment
Buildings right-of-use assets
Plant and equipment right-of-use assets
Total depreciation
Amortisation
Development
Intellectual property
Customer contracts
Software
Total amortisation
Total depreciation and amortisation
Finance costs
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
Bank fees and charges
Interest on deferred liabilities**
Interest on convertible notes (debt host)*
Fair value movement on embedded derivatives*
Finance costs expensed
Net foreign exchange loss
Net foreign exchange loss
Leases
Short-term lease payments
Superannuation expense
Defined contribution superannuation expense
Consolidated
2022
$
2021
$
62,639
288,302
361,686
413,214
80,213
11,876
242,683
119,047
408,076
147,271
1,206,054
928,953
1,912,586
720,997
139,157
473,879
1,777,252
112,147
187,485
302,155
3,246,619
2,379,039
4,452,673
3,307,992
30,838
13,914
267,060
1,054,819
-
-
296,026
31,654
157,970
-
453,224
1,341,205
1,366,631
2,280,079
50,223
6,212
190,564
207,021
1,933,720
1,492,415
*
**
Interest on convertible notes and FV movements relate to Convertible notes that converted to equity on the IPO and
are non-recurring in nature.
This is a once off amount in relation to the EEG earn-out interest and is agreed at 30 June 2022.
56
57
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 9. Income tax
Income tax expense/(benefit)
Current tax - adjustments recognised for prior periods
Deferred tax - origination and reversal of temporary differences
Deferred tax - adjustments recognised for prior periods
Deferred tax write off for carried forward losses of overseas entity*
Aggregate income tax expense/(benefit)
Deferred tax included in income tax expense/(benefit) comprises:
Increase in deferred tax assets
Increase/(decrease) in deferred tax liabilities
Deferred tax - origination and reversal of temporary differences
Numerical reconciliation of income tax expense/(benefit) and tax at the statutory rate
Loss before income tax (expense)/benefit
Tax at the statutory tax rate of 30% (2021: 26%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Research and Development
Other non-assessable and non-deductible items
Sundry items
Difference in overseas tax rates
Current tax - adjustments recognised for prior periods
Deferred tax - adjustments recognised for prior periods
Deferred tax write off for carried forward losses of overseas entity
Income tax expense/(benefit)
Consolidated
2022
$
2021
$
441,868
(654,932)
(590,363)
1,025,697
(49,645)
(3,604,938)
101,526
-
222,270
(3,553,057)
(933,801)
278,869
(3,121,579)
(483,359)
(654,932)
(3,604,938)
(4,701,445)
(14,244,547)
(1,410,434)
(3,703,582)
(25,500)
419,332
-
(162,500)
346,879
4,365
(1,016,602)
361,670
441,868
(590,363)
1,025,697
(3,514,838)
(139,745)
-
101,526
-
222,270
(3,553,057)
*
With the Group's focus on North America, it has reassessed the ability of one of its immaterial foreign subsidiaries to
generate taxable income and has derecognised the carried forward tax losses in the current year.
As the Group's aggregated turnover is above $50 million at the end of the 2021-22 income year, it is no longer a base rate
entity. Therefore, the applicable corporate tax rate for the 2021-2022 income year is 30%. The Company has remeasured
its deferred tax balances, and any unrecognised potential tax benefits arising from carried forward tax losses, based on the
effective tax rate that is expected to apply in the year the temporary differences are expected to reverse or benefits from tax
losses realised. The impact of the change in tax rate on deferred tax balances has been recognised as tax expense in profit
or loss or as an adjustment to equity to the extent to which the deferred tax relates to items previously recognised outside
profit or loss.
Amounts credited directly to equity
Deferred tax assets
Consolidated
2022
$
2021
$
-
(606,272)
57
58
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 9. Income tax (continued)
Deferred tax asset
Deferred tax asset comprises temporary differences attributable to:
Allowance for expected credit losses
Property, plant and equipment
Employee benefits
Provisions
Accrued expenses
Tax losses
Research and development tax losses
Prepayments
Contract assets
Capitalised development cost and customer contracts
IPO costs
Right-of-use assets/lease liabilities
Unearned revenue
Tax losses from foreign entities
Deferred tax asset
Movements:
Opening balance
Credited to profit or loss
Credited to equity
Credited to profit or loss in relation to prior year adjustment
Deferred tax write off for carried forward losses of overseas entity
Closing balance
Consolidated
2022
$
2021
$
9,839
209,975
552,204
40,993
267,033
3,529,536
1,966,561
(916)
-
(416,324)
1,020,627
36,830
45,646
275,502
14,833
(19,072)
471,839
177,016
(12,261)
3,942,995
1,834,062
(219)
(21,236)
(721,869)
1,309,016
86,707
-
-
7,537,506
7,061,811
7,061,811
933,801
-
567,591
(1,025,697)
3,333,960
3,121,579
606,272
-
-
7,537,506
7,061,811
The Group has not recognised a deferred tax asset on unused tax losses (revenue in nature) as deductible temporary
differences in the above calculations to the extent of $1,417,728 (2021: $nil) relating to one of its immaterial foreign
subsidiaries.
Deferred tax liability
Deferred tax liability comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Intangibles
Tax losses - overseas entities
Deferred tax liability
Movements:
Opening balance
Charged/(credited) to profit or loss
Additions through business combinations (note 32)
Credited to profit or loss in relation to prior year adjustment
Closing balance
58
Consolidated
2022
$
2021
$
2,588,402
(227,261)
2,588,402
(483,359)
2,361,141
2,105,043
2,105,043
278,869
-
(22,771)
-
(483,359)
2,588,402
-
2,361,141
2,105,043
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 9. Income tax (continued)
Provision for income tax
Provision for income tax
59
Consolidated
2022
$
2021
$
22,114
-
The Group has recognised a deferred tax asset in respect of the tax losses as it is considered probable that there will be
future taxable profits available in excess of the profits arising from the reversal of existing taxable temporary differences.
Note 10. Cash and cash equivalents
Current assets
Cash on hand
Cash at bank
Note 11. Trade and other receivables
Current assets
Trade receivables
Less: Allowance for expected credit losses
Other receivables
Prepayments
Security deposits
Consolidated
2022
$
2021
$
278
15,183,812 17,863,942
458
15,184,270 17,864,220
Consolidated
2022
$
2021
$
11,599,814 12,388,577
(192,148)
11,241,497 12,196,429
(358,317)
988,673
1,289,927
85,367
322,708
628,113
48,269
13,605,464 13,195,519
Allowance for expected credit loses acquired through business combinations amounting to $277,937 at 30 June 2021 are
netted with gross receivables.
Allowance for expected credit losses
The Group has recognised a loss of $176,422 (2021: $83,923) in profit or loss in respect of the expected credit losses for
the year ended 30 June 2022.
59
60
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 11. Trade and other receivables (continued)
The ageing of the receivables and allowance for expected credit losses provided for above are as follows:
Consolidated
Not overdue
0 to 3 months overdue
Over 3 months overdue
Carrying amount
2021
$
2022
$
Allowance for expected
credit losses
2022
$
2021
$
6,070,523
3,790,241
1,739,050
6,270,425
4,896,614
1,221,538
11,083
117,260
229,974
11,476
85,024
95,648
11,599,814 12,388,577
358,317
192,148
Movements in the allowance for expected credit losses are as follows:
Opening balance
Additional provisions recognised
Foreign currency translation
Closing balance
Note 12. Inventories
Current assets
Inventories - at cost
Note 13. Contract assets
Current assets
Contract assets
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
Additions
Amounts recognised in profit and loss
Closing balance
60
Consolidated
2022
$
2021
$
192,148
176,422
(10,253)
139,714
83,923
(31,489)
358,317
192,148
Consolidated
2022
$
2021
$
648,029
427,108
Consolidated
2022
$
2021
$
247,403
54,299
54,299
1,320,467
(1,127,363)
374,578
6,973,106
(7,293,385)
247,403
54,299
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 14. Other current assets
Current assets
Term deposit
61
Consolidated
2022
$
2021
$
272,076
272,076
The term deposit bears interest of 0.25% (2021: 0.4%) per annum and has a maturity of more than three months but less
than one year.
Note 15. Property, plant and equipment
Non-current assets
Land and buildings - at cost
Less: Accumulated depreciation
Leasehold improvements - at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
Consolidated
2022
$
2021
$
2,903,179
(74,515)
2,828,664
2,659,575
(11,876)
2,647,699
1,580,984
(1,334,255)
246,729
1,511,960
(1,070,520)
441,440
6,025,367
(4,914,929)
1,110,438
4,338,429
(3,301,609)
1,036,820
4,185,831
4,125,959
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2020
Additions
Additions through business combinations (note 32)
Exchange differences
Depreciation expense
Balance at 30 June 2021
Additions
Exchange differences
Depreciation expense
Balance at 30 June 2022
Land and
building
$
Leasehold
improvements
$
Plant and
equipment
$
-
-
2,571,686
87,889
(11,876)
2,647,699
-
243,604
(62,639)
714,353
-
-
(30,230)
(242,683)
441,440
58,126
35,465
(288,302)
376,968
741,536
26,141
11,222
(119,047)
1,036,820
467,302
(31,998)
(361,686)
Total
$
1,091,321
741,536
2,597,827
68,881
(373,606)
4,125,959
525,428
247,071
(712,627)
2,828,664
246,729
1,110,438
4,185,831
Refer to note 27 for further information on fair value measurement.
61
62
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 16. Right-of-use assets
Non-current assets
Buildings - right-of-use
Less: Accumulated depreciation
Plant and equipment - right-of-use
Less: Accumulated depreciation
Consolidated
2022
$
2021
$
2,546,876
(1,985,074)
561,802
1,985,618
(1,571,320)
414,298
1,203,001
(1,129,885)
73,116
1,203,001
(1,049,672)
153,329
634,918
567,627
The Group leases buildings for its offices under agreements of between one to three years with, in some cases, options to
extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated. The Group also
leases plant and equipment under agreements of three years.
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2020
Depreciation expense
Balance at 30 June 2021
Additions
Depreciation expense
Balance at 30 June 2022
Buildings
right-of-use
$
Plant and
equipment
right-of-use
$
Total
$
822,374
(408,076)
300,600
(147,271)
1,122,974
(555,347)
414,298
560,718
(413,214)
153,329
-
(80,213)
567,627
560,718
(493,427)
561,802
73,116
634,918
For other lease related disclosures refer to the following:
●
●
●
●
note 8 for details of depreciation on right-of-use assets, interest on lease liabilities and other lease payments;
note 21 for lease liabilities at year end;
note 26 for maturity analysis of lease liabilities; and
consolidated statement of cash flow for repayment of lease liabilities.
62
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 17. Intangibles
Non-current assets
Goodwill - at cost
Development - at cost
Less: Accumulated amortisation
Intellectual property - at cost
Less: Accumulated amortisation
Brand name and trademarks - at cost
Customer contracts - at cost
Less: Accumulated amortisation
Software - at cost
Less: Accumulated amortisation
63
Consolidated
2022
$
2021
Restated
$
43,278,754 39,104,366
10,695,903
(6,805,647)
3,890,256
8,725,160
(4,893,061)
3,832,099
8,234,159
(1,247,326)
6,986,833
7,594,755
(473,253)
7,121,502
275,802
228,607
4,396,522
(907,093)
3,489,429
4,009,201
(697,268)
3,311,933
4,155,433
(1,743,917)
2,411,516
3,867,822
(1,251,944)
2,615,878
60,332,590 56,214,385
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Goodwill
$
Develop-
ment
$
Intellectual
property
$
Brand name
and
trademarks
$
Customer
contracts
$
Software
$
Total
$
Balance at 1 July 2020
Additions
Additions through business
combinations (note 32)
Adjustment on ACS acquisition
(note 4)
Exchange differences
Amortisation expense
5,714,525 3,951,278
- 1,607,231
276,885
-
- 1,142,608
-
-
158,757 11,244,053
558,083 2,165,314
31,456,548
-
6,728,816
244,310
2,362,265
2,137,071
42,929,010
1,330,141
603,152
-
50,842
- (1,777,252)
-
227,948
(112,147)
-
(15,703)
-
-
(5,455)
(187,485)
-
64,122
1,330,141
924,906
(302,155) (2,379,039)
Balance at 30 June 2021
Additions
Exchange differences
Amortisation expense
39,104,366 3,832,099 7,121,502
-
- 1,970,743
586,328
-
(720,997)
- (1,912,586)
4,174,388
228,607 3,311,933 2,615,878 56,214,385
55,560 2,026,303
213,957 5,338,521
(473,879) (3,246,619)
-
316,653
(139,157)
-
47,195
-
Balance at 30 June 2022
43,278,754 3,890,256 6,986,833
275,802 3,489,429 2,411,516 60,332,590
Impairment test for goodwill
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash generating units (CGU), or groups
of CGUs, that are expected to benefit from the synergies of the combinations. Each unit or groups of units to which goodwill
is allocated represents the lowest level at which assets are monitored for internal management purposes.
63
64
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 17. Intangibles (continued)
The carrying amount of goodwill has been allocated to the CGUs as follows:
North America
ROW
Consolidated
2022
$
2021
Restated
$
42,889,320 38,714,932
389,434
389,434
43,278,754 39,104,366
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
Based on the growth experienced in the ROW CGU, no impairment of goodwill has been identified. The goodwill associated
with the North America CGU, arose through the ACS, CaptionAccess, Caption IT and EEG acquisitions. Subsequent to the
acquisition, the subsidiaries continued to operate ahead of expectations and the Group is benefiting from the synergies of
the combination in the North America CGU.
The Directors have assessed the recoverable amount of the North America CGU, using discount cash flow model, is in
excess of the carrying amount and no reasonable changes to key assumptions would lead to impairment. The model used
a discount rate of 8%, an average growth rate of 27% for the next 5 years and a terminal growth rate of 3%.
Sensitivity analysis
The Group has conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used to
determine the recoverable amount for each of the group of CGUs to which goodwill is allocated. The directors believe that
any reasonably possible change in the key assumptions would not cause the aggregate carrying amount to exceed the
aggregate recoverable amount of the related CGUs.
On management assumptions, sensitivities are applied by using a discount rate of 12.375% and a long term growth rate of
2% on FY23 approved budgets and the headroom is USD 13,436,000. Further sensitivities are applied to the value-in-use
calculations with the associated headroom are set out below. These are considered to be reasonably possible, but not likely.
●
●
Increase in the discount rate by 1% - 2% on FY23 budgets; and
Reduction in revenue growth rates on FY23 budgets by 5-10%.
The following table sets out the goodwill attributable to this CGU, the excess of the recoverable amount over the carrying
value:
Goodwill – North America CGU
Headroom under base case assumption based on FY23 budgets
1% increase in WACC
2% increase in WACC
5% reduction in revenue growth rate
10% reduction in revenue growth rate
US$
13,436,000
8,668,000
4,653,000
8,332,000
3,207,000
64
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 18. Trade and other payables
Current liabilities
Trade payables
Accrued expenses
Other payables
Refer to note 26 for further information on financial instruments.
Note 19. Contract liabilities
Current liabilities
Contract liabilities
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
Billings during the year
Additions through business combinations (note 32)
Transfer to revenue
Foreign exchange
Closing balance
65
Consolidated
2022
$
2021
$
1,750,228
4,407,361
-
1,097,680
5,715,624
244,282
6,157,589
7,057,586
Consolidated
2022
$
2021
$
3,306,407
1,697,030
1,697,030
13,363,899
-
(11,806,177)
51,655
167,812
768,557
975,955
(256,674)
41,380
3,306,407
1,697,030
Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the
reporting period was $3,306,407 as at 30 June 2022 ($1,697,030 as at 30 June 2021) and is expected to be recognised as
revenue in future periods as follows:
Within 12 months
Consolidated
2022
$
2021
$
3,306,407
1,697,030
65
66
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 20. Borrowings
Current liabilities
Insurance premium funding loan
Related party loans
Consolidated
2022
$
2021
$
145,253
-
-
263,993
145,253
263,993
Insurance premium funding loan
The premium funding loan has a term of 10 monthly payments, with the final payment due 30 August 2022 with an interest
rate of 3.88%.
Note 21. Lease liabilities
Current liabilities
Lease liability
Non-current liabilities
Lease liability
Consolidated
2022
$
2021
$
267,570
609,446
331,811
259,198
599,381
868,644
Refer to note 26 for further information on the maturity analysis of lease liabilities.
Assets pledged as security
Hire purchase lease liabilities are effectively secured as the rights to the leased assets, recognised in the statement of
financial position, and would revert to the lessor in the event of default.
66
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 22. Provisions
Current liabilities
Annual leave
Long service leave
Deferred liability
Lease make good
Other provisions
Non-current liabilities
Long service leave
Deferred liability
Lease make good
67
Consolidated
2022
$
2021
Restated
$
1,376,817
421,912
362,897
99,300
1,353,068
1,089,448
254,587
1,330,141
142,000
557,479
3,613,994
3,373,655
373,239
7,083,757
24,395
366,183
4,930,452
123,352
7,481,391
5,419,987
11,095,385
8,793,642
Deferred liability
The provision represents the obligation to pay deferred consideration following the acquisition of a business or assets. These
are known contractual liabilities as at 30 June 2022.
Lease make good
The provision represents the present value of the estimated costs to make good the premises leased by the Group at the
end of the respective lease terms.
Other provisions
Other provisions represents the best estimate of a tax provision associated with the share based payment plan of $550,000
and for other indirect taxes in a foreign subsidiary amounting to $803,068.
Annual leave and long service leave
The current portion of provision for employee benefits includes the total amount accrued for annual leave entitlements and
the amounts accrued for long service leave entitlements that have vested due to employees having completed the required
year of service. Based on past experience, the company does not expect the full amount of annual leave balances classified
as current provisions to be settled within the next 12 months. However, these amounts must be classified as current, since
the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to
use their leave entitlement.
67
68
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 22. Provisions (continued)
Movements in provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
Consolidated - 2021
Carrying amount at the start of the year
Additions through business combinations (restated) (note 4)
Adjustments relating to ACS Restricted Stock Unit plan (restated) (note 4)
Payments
Conversion to equity
Unused amounts reversed
Carrying amount at the end of the year
Consolidated - 2022
Carrying amount at the start of the year
Additional provisions recognised
Amounts used
Currency translation difference
Unwinding of discount
Unused amounts reversed
Carrying amount at the end of the year
Note 23. Issued capital
Lease
makegood
$
Deferred
liability
$
Other
provisions
$
265,352
-
-
-
-
-
265,352
5,565,085
4,930,452
1,330,141
(2,707,940)
(2,857,145)
-
6,260,593
1,754,780
-
-
-
-
(1,197,301)
557,479
265,352
-
-
-
-
(141,657)
123,695
6,260,593
-
(363,585)
784,163
1,054,819
(289,336)
7,446,654
557,479
803,068
-
-
-
(7,479)
1,353,068
Ordinary shares - fully paid
207,925,773 209,439,498 109,968,446 110,566,210
Consolidated
2022
Shares
2021
Shares
2022
$
2021
$
68
69
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 23. Issued capital (continued)
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Capital raising issuance
Supplementary capital raising issuance
Employee share scheme
Employee share option
Conversion of convertible notes
Deferred consideration
Issuance of shares on business combination
Issuance of shares on capital raising
Issuance of shares on capital raising
Issuance of shares on business combination
Transaction costs (net of tax)
1 July 2020
9 September 2020
9 September 2020
9 September 2020
9 September 2020
9 September 2020
9 September 2020
4 April 2021
10 May 2021
26 May 2021
30 June 2021
96,200,980
24,390,244
158,535
7,667,250
960,000
12,677,970
2,322,882
421,887
43,709,631
6,300,102
14,630,017
-
$1.23
$1.23
$0.53
$0.49
$1.19
$1.23
$0.97
$0.80
$0.80
$0.84
$0.00
8,980,031
30,000,000
194,998
4,028,387
472,856
15,033,993
2,857,145
409,231
34,967,705
5,040,082
12,289,215
(3,707,433)
Balance
Conversion of Restricted Share Units issued to KMP 30 September 2021
Conversion of Restricted Share Units issued to KMP 26 October 2021
November 2021 -
Share buy-back
June 2022
30 June 2021
209,439,498
60,705
4,912
$1.23
$0.86
110,566,210
75,000
4,247
(2,000,000)
$0.51
(1,164,006)
Conversion of Restricted Stock Units issued for ACS
acquisition
Conversion of Restricted Stock Units issued to ex-
ACS employees
Transaction costs (net of tax)
1 February 2022
295,597
$1.23
363,585
1 February 2022
125,061
$1.23
153,824
(30,414)
Balance
30 June 2022
207,925,773
109,968,446
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders
should the Company be wound up in proportions that consider both the number of shares held and the extent to which those
shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of
authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
The Company completed an on market buy-back of 2,000,000 shares on 6 June 2022. There is no current on-market share
buy-back.
Capital risk management
The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide
returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost
of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding
relative to the current Company's share price at the time of the investment. The Group is not actively pursuing additional
investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
69
70
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 23. Issued capital (continued)
The Group is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk
management decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2021 Annual Report.
Note 24. Reserves
Foreign currency translation reserve
Employee share option reserve
Consolidated
2022
$
2021
$
7,041,523
154,170
1,076,260
75,000
7,195,693
1,151,260
Foreign currency translation reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars.
Employee share scheme ('ESS') reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration.
Employee share option reserve
The reserve is used to recognise the value of share options benefits provided to employees and directors as part of their
remuneration.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2020
Foreign currency translation
Share-based payments
Exercise/cancellation of share options
Balance at 30 June 2021
Foreign currency translation
Share-based payments
Conversion of RSUs to ordinary shares
Transfer to accumulated losses
Balance at 30 June 2022
Note 25. Dividends
Foreign
currency
translation
reserve
$
Employee
share scheme
reserve
$
Employee
share option
reserve
$
Total
$
(22,863)
1,099,123
-
-
8,308,142
-
-
(8,308,142)
386,330
-
75,000
(386,330)
8,671,609
1,099,123
75,000
(8,694,472)
1,076,260
5,406,060
-
-
559,203
7,041,523
-
-
-
-
-
-
75,000
-
307,994
(228,824)
-
1,151,260
5,406,060
307,994
(228,824)
559,203
154,170
7,195,693
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
70
71
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 25. Dividends (continued)
Franking credits
Consolidated
2022
$
2021
$
Franking credits available for subsequent financial years based on a tax rate of 30% (2021:
26%)
104,411
104,411
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
●
●
●
franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date
Note 26. Financial instruments
Financial risk management objectives
The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and
interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability
of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.
Risk management is carried out by senior finance executives ('Finance') under frameworks approved by the Board of
Directors ('the Board'). These frameworks include identification and analysis of the risk exposure of the Group and
appropriate procedures, controls and risk limits.
Market risk
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through
foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the reporting
date were as follows:
Consolidated
Pound sterling
Canadian dollars
Singapore dollars
US dollars
Malaysian ringgit
Assets
Liabilities
2022
$
2021
$
2022
$
2021
$
6,191,804
7,143,152
6,411,621
1,749,490
8,231,291
5,101,717
1,750,316
43,870,696 19,185,034 90,832,727 59,470,832
53,908
-
9,802,482
432,439 12,848,365
2,208,223
1,391,888
482,596
64,926
59,239,885 27,201,165 116,174,393 74,608,064
71
72
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 26. Financial instruments (continued)
The Group had net liabilities denominated in foreign currencies of $56,934,508 (assets of $59,239,885 less liabilities of
$116,174,393) as at 30 June 2022 (2021: $47,406,899 (assets of $27,201,165 less liabilities of $74,608,064)). Based on this
exposure, had the Australian dollars weakened by 5%/strengthened by 5% (2021 : weakened by 5%/strengthened by 5%)
against these foreign currencies with all other variables held constant, the Group's profit before tax for the year would have
been $286,037 lower/$286,037 higher (2021: $237,629 lower/$237,629 higher) and equity would have been $200,226
lower/$200,226 higher (2021: $166,340 lower/$166,340 higher). The percentage change is the expected overall volatility of
the significant currencies, which is based on management's assessment of reasonable possible fluctuations taking into
consideration movements over the last 12 months each year and the spot rate at each reporting date. The actual foreign
exchange loss for the year ended 30 June 2022 was $50,223 (2021: loss of $6,212).
Price risk
The Group is not exposed to any significant price risk.
Interest rate risk
Interest rate risk arises from long-term borrowings. The Group has no long-term borrowings thus, the Group is not exposed
to any significant interest rate risk.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has a strict code of credit, confirming references and setting appropriate credit limits. The Group obtains
guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised
financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement
of financial position and notes to the financial statements. The Group does not hold any collateral.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through
the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative
across all customers of the Group based on recent sales experience, historical collection rates and forward-looking
information that is available.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of
a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a
period greater than 1 year.
Liquidity risk
Liquidity risk requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available
borrowing facilities to be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously
monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
72
73
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 26. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial
liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities (except as noted below) and therefore these totals may differ from their carrying amount in the statement of
financial position.
Consolidated - 2022
Non-interest bearing
Trade payables
Interest-bearing - fixed rate
Insurance premium funding loan
Lease liability
Deferred liability
Total non-derivatives
Consolidated - 2021
Non-interest bearing
Trade payables
Other payables
Interest-bearing - fixed rate
Payable to related parties
Lease liability
Deferred consideration
Total non-derivatives
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
1,750,228
-
-
-
1,750,228
150,889
285,775
362,897
2,549,789
-
203,123
7,650,458
7,853,581
-
140,827
-
140,827
150,889
-
629,725
-
-
8,013,355
- 10,544,197
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
1,097,680
244,282
-
-
263,993
620,943
1,330,141
3,557,039
-
259,947
4,930,452
5,190,399
-
-
-
-
-
-
-
-
-
-
-
-
1,097,680
244,282
263,993
880,890
6,260,593
8,747,438
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
73
74
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 27. Fair value measurement
Fair value hierarchy
The following tables detail the Group's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy,
based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly
Level 3: Unobservable inputs for the asset or liability
Consolidated - 2022
Liabilities
Deferred liability
Total liabilities
Consolidated - 2021
Liabilities
Deferred liability
Total liabilities
Level 1
$
Level 2
$
Level 3
$
Level 1
$
-
-
-
-
-
-
7,446,654
7,446,654
Level 2
$
Level 3
$
-
-
6,260,593
6,260,593
There were no transfers between levels during the financial year.
Valuation techniques for fair value measurements categorised within level 2 and level 3
As at 30 June 22, all deferred ACS and EEG liabilities are now fixed and are known contractual liabilities.
Level 3 assets and liabilities
Refer to note 22 and for the movement in the deferred consideration.
Note 28. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Deloitte Touche Tohmatsu, the
auditor of the Company:
Audit services - Deloitte Touche Tohmatsu
Audit or review of the financial statements
Other services - Deloitte Touche Tohmatsu
Preparation of tax return and other tax compliance
IPO and Due diligence costs
Other assurance services
Consolidated
2022
$
2021
$
349,530
273,500
106,594
-
-
180,007
754,725
12,000
106,594
946,732
456,124
1,220,232
Note 29. Contingent liabilities
The Group has given bank guarantees as at 30 June 2022 of $368,360 (2021: $368,360) to various landlords and a customer.
74
75
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 30. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the Group is set out
below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Note 31. Related party transactions
Parent entity
Ai-Media Technologies Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 33.
Consolidated
2022
$
2021
$
865,790
60,130
4,135
61,644
995,412
77,834
4,715
171,562
991,699
1,249,523
Key management personnel
Disclosures relating to key management personnel are set out in note 30 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Payment for other expenses:
Interest paid on convertible notes
Fair value movement on embedded derivatives to director and related entities
Consolidated
2022
$
2021
$
-
-
453,224
1,341,205
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Current borrowings:
Related party loans
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Consolidated
2022
$
2021
$
-
263,993
75
76
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 32. Business combinations
Acquisition of EEG
On 7 May 2021, the Group completed the acquisition of 100% of the share capital of EEG Enterprise, Inc. ('EEG') with the
effective date of 7 May 2021, for a total consideration of up to US$34,000,000. This is funded by an upfront cash consideration
of US$20,000,000, the issuance of 14,630,017 shares of the Company on the 30 June 2021, after an extraordinary
shareholders general meeting on 29 June 2021, for an effective issue price of AU$0.84 per share and contingent
consideration of up to US$4,000,000 subject to revenue and growth rate hurdles payable after the release of the financial
year 2022 financial result.
On 30 September 2021, the variation to earn out arrangements under the Stock Purchase Agreement ('SPA') on acquisition
of EEG was finalised and the contingent consideration of US$4,000,000 was amended to US$4,600,000. The changes to
the contingent consideration was recorded as of the date of purchase and the comparative statement of financial position as
of 30 June 2021 was restated on the change in the goodwill and contingent consideration amount as presented in the table
below.
On 30 June 2022, the contingent consideration of US$4,600,000 is no longer provisional and is now a known contractual
liability. The fair value adjustment related to the EEG earn-out arrangement is disclosed below.
76
77
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 32. Business combinations (continued)
Details of the acquisition are as follows:
Cash and cash equivalents
Trade receivables
Other receivables
Inventories
Buildings
Plant and equipment
Intellectual property
Brand name and trademarks
Customer contracts
Software
Deferred tax liability
Trade payables
Other payables
Contract liabilities
Net assets acquired
Goodwill
EEG
30 June 2021
Reported
30 June 2021
Restated
Fair value
$
Total
Fair value
Adjustment
Fair value
Total
Fair value
$
$
$
3,894,933
2,055,106
22,254
450,045
2,571,686
9,743
6,728,816
244,310
1,298,701
2,137,071
(2,588,402)
-
(3,699,064)
(975,955)
4,147,485
2,440,510
22,254
450,045
2,571,686
26,141
6,728,816
244,310
2,362,265
2,137,071
(2,588,402)
(40,705)
(3,777,809)
(975,955)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,147,485
2,440,510
22,254
450,045
2,571,686
26,141
6,728,816
244,310
2,362,265
2,137,071
(2,588,402)
(40,705)
(3,777,809)
(975,955)
12,149,244 13,747,712
29,650,850 30,748,804
-
13,747,712
707,744 31,456,548
Acquisition-date fair value of the total consideration
transferred
41,800,094
44,496,516
707,744
45,204,260
Representing:
Cash paid or payable to vendor
Ai-Media Technologies Limited shares issued to vendor
Contingent consideration
25,288,171 27,575,362
12,698,446
4,222,708
12,289,215
4,222,708
-
-
707,744
27,575,362
12,698,446
4,930,452
41,800,094 44,496,516
707,744 45,204,260
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration
transferred
Less: cash and cash equivalents
Less: payments to be made in future periods
Less: contingent consideration
Less: shares issued by Company as part of consideration
41,800,094
(3,894,933)
-
(4,222,708)
(12,289,215)
44,496,516
(4,147,485)
(244,282)
(4,222,708)
(12,698,446)
707,744
-
-
(707,744)
-
45,204,260
(4,147,485)
(244,282)
(4,930,452)
(12,698,446)
Net cash used
21,393,238 23,183,595
-
23,183,595
77
78
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 33. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 2:
Name
Access Innovation Media Pty Limited
Access Innovation IP Pty Limited
Ai-Media Employee Incentive Trust***
Access Innovation Media UK Ltd
-Ai-Media UK B Ltd *
Ai Media Inc.
-Alternative Communication Services LLC
-PostCAP LLC
Ai-Media Canada Inc.**
Ai-Media NZ Limited
Ai-Media SG Pte. Ltd
Caption IT LLC
CaptionAccess LLC
EEG Enterprise, Inc
Access Innovation Media Malaysia Sdn Bhd
Principal place of business /
Country of incorporation
Ownership interest
2021
2022
%
%
Australia
Australia
Australia
United Kingdom
United Kingdom
United States of America
United States of America
United States of America
Canada
New Zealand
Singapore
United States of America
United States of America
United States of America
Malaysia
100%
100%
100%
100%
100%
100%
100%
100%
49%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
49%
100%
100%
100%
49%
100%
100%
*
**
Wholly-owned subsidiary of Access Innovation Media UK Ltd.
Ai-Media Canada Inc is owned 51% by Anthony Abrahams and 49% by Ai-Media Technologies Limited. Ai Media
Canada Inc is 100% consolidated into Ai-Media Technologies Limited as they share in 100% of the variable returns and
are able to use their power to affect such returns.
*** Wound up as at 30 June 2022.
Note 34. Earnings per share
Consolidated
2022
$
2021
$
Loss after income tax attributable to the owners of Ai-Media Technologies Limited
(4,923,715)
(10,691,490)
Weighted average number of ordinary shares used in calculating basic loss per share
208,985,024 142,128,762
Weighted average number of ordinary shares used in calculating diluted loss per share
208,985,024 142,128,762
Number
Number
Basic loss per share
Diluted loss per share
There are no options outstanding as at 30 June 2022 and 30 June 2021.
Cents
Cents
(2.36)
(2.36)
(7.52)
(7.52)
78
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 35. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit/(loss) after income tax
Total comprehensive income/(loss)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Foreign currency translation reserve
Employee share option reserve
Accumulated losses
Total equity
Movement in accumulated losses
Accumulated losses at the beginning of the financial year
Total comprehensive income/(loss)
Transfer from reserves
Accumulated losses
79
Parent
2022
$
2021
$
3,188,391
(4,345,630)
3,188,391
(4,345,630)
Parent
2022
$
2021
$
105,017,082 103,611,751
110,302,623 108,821,171
2,355,397
3,543,742
2,355,397
3,543,742
109,968,446 110,566,210
(734,233)
-
75,000
(4,629,548)
154,170
(2,175,390)
107,947,226 105,277,429
Parent
2022
$
2021
$
(4,629,548)
3,188,391
(734,233)
(4,667,849)
(4,345,630)
4,383,931
(2,175,390)
(4,629,548)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2022 and 30 June 2021.
Contingent liabilities
Except as disclosed in note 29, the parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 and 30 June 2021.
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AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 35. Parent entity information (continued)
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except for the
following:
●
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an
indicator of an impairment of the investment.
Note 36. Reconciliation of loss after income tax to net cash from/(used in) operating activities
Loss after income tax (expense)/benefit for the year
(4,923,715)
(10,691,490)
Consolidated
2022
$
2021
$
Adjustments for:
Depreciation and amortisation
Share-based payments
Items classified as financing and other non-cash items
Change in operating assets and liabilities:
Increase in trade and other receivables
Decrease/(increase) in contract assets
Decrease/(increase) in inventories
Increase in deferred tax assets
Decrease in trade and other payables
Increase in contract liabilities
Increase in provision for income tax
Increase/(decrease) in deferred tax liabilities
Increase in provisions
Net cash from/(used in) operating activities
4,452,673
307,994
(37,799)
3,307,992
1,042,600
1,794,429
(69,925)
(193,104)
(220,921)
(475,695)
(747,996)
1,609,377
22,114
256,098
1,914,389
(4,586,759)
320,279
22,937
(3,069,698)
(4,864,988)
553,263
-
(483,359)
(1,299,648)
1,893,490
(17,954,442)
Note 37. Changes in liabilities arising from financing activities
Consolidated
Balance at 1 July 2020
Payments in relation to
financing activities
Conversion of convertible
notes to equity
Other changes
Balance at 30 June 2021
Net cash used in financing
activities
Acquisition of leases
Other changes
Balance at 30 June 2022
Bank loans
$
Shareholder
loans
$
Other loans
$
Related
party loans
$
Convertible
notes
$
Lease
liability
$
Total
$
757,686 2,413,918
29,506
512,409
9,918,942 1,790,658 15,423,119
(757,686) (2,413,918)
(29,506)
(248,416)
-
(922,014)
(4,371,540)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (15,033,993)
- 5,115,051
- (15,033,993)
- 5,115,051
263,993
(303,993)
-
40,000
-
-
-
-
-
-
868,644 1,132,637
(788,777)
560,718
(41,204)
(1,092,770)
560,718
(1,204)
599,381
599,381
80
81
Ai-Media Technologies Limited
Notes to the consolidated financial statements
30 June 2022
Note 38. Share-based payments
Restricted Share Units ('RSUs')
The Company agreed to grant each Non-Executive Directors RSUs to the value of $25,000 per annum for each of the first 3
financial years following the IPO. The first tranche of the 60,705 RSUs was vested and convertible into fully paid ordinary
shares of the Company at 30 June 2021 based on the Offer Price under the IPO. The second tranche of 70,391 RSUs was
vested as at 30 June 2022 and converted into fully paid ordinary shares of the Company on 7 July 2022. The third tranche
will vest, and be convertible into fully paid ordinary shares of the Company, based on a 10-day VWAP to the vesting date of
the RSUs unless otherwise determined by the Board.
In determining the fair value at grant date of restricted share units, reference was made to the value of the share-based
payment entitlement of $25,000. A valuation model was not required and no further inputs were considered necessary since
the entitlement at grant date has been fixed at $25,000.
On 20 December 2021, the granted RSUs to Ex-ACS employees as part of the acquisition of ACS. 125,061 RSUs were
vested and converted into fully paid ordinary shares of the company on 1 February 2022 based on the offer price under the
IPO to the value of $153,824. The second tranche of RSUs vested and not issued as at 30 June 2022 amounted to $92,526.
On 17 December 2021, 6,766,136 RSUs were granted. These RSUs did not meet the vesting conditions, performance and
RTSR hurdles and have therefore lapsed. No expenses in relation to the RSUs have been recorded in the financial year
ended 30 June 2022.
The share-based payment expense in relation to RSUs for 2022 is $307,994 (2021: $75,000).
Note 39. Events after the reporting period
On 11 July 2022, the Company signed an agreement to defer USD$4,600,000 earn-out in respect to the purchase of EEG.
The amount of the earn-out has been agreed at USD$4,968,000, which is inclusive of additional simple interest of 8% per
annum over the 12 month period from 30 September 2022 to 29 September 2023 in respect of the earn-out amount
prescribed in the Purchase Agreement of USD$4,600,000.
No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
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AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Directors' declaration
30 June 2022
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June
2022 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Anthony Abrahams
Director and Chief Executive Officer
29 August 2022
Sydney
82
83
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Grosvenor Place
225 George Street
Sydney, NSW, 2000
Australia
Phone: +61 2 9322 7000
www.deloitte.com.au
Independent Auditor’s Report to the members of Ai‐Media
Technologies Limited
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
Opinion
We have audited the financial report of Ai‐Media Technologies Limited (the “Company”) and its subsidiaries (the
“Group”) which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies and other explanatory information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance
for the year then ended; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte Organisation
83
84
AI MEDIA ANNUAL REPORT 2022
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report for the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
KKeeyy AAuuddiitt MMaatttteerr
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt MMaatttteerr
Restatement of prior period financial
information
Refer to:
‐ Note 4 Restatement of comparatives
‐ Note 22 Provisions
‐ Note 32 Business combinations
Our audit procedures included, but were not limited to:
• Assessed the design and implementation of key controls
within management’s financial reporting processes;
• Reviewed management’s restated financial information for
the year ended 30 June 2021 and obtained evidence to
support the material adjustments to the previously disclosed
financial information of the Group;
in
identified an error
The Group
its
determination of consideration relating to
prior period acquisitions as a result of the
and
reconsideration of
conditions attached to the Restricted Stock
Unit plan (“RSU”) put in place as part of the
acquisition of ACS.
terms
the
On 30 September 2021, the variation to
earn out arrangements under the Stock
Purchase Agreement ('SPA') on acquisition
of EEG was finalized and the deferred
consideration was restated.
to
• With regards
the ACS RSU plan, reviewed key
documentation including Letters of Intent, Share Purchase
Agreement, Executive service contract, the RSU issue letter,
exit agreement and
legal advisor’s
interpretation of the RSU payment pool;
the Company’s
• With regards to EEG, reviewed the variation letter to the earn‐
out arrangements under the Stock Purchase Agreement;
• Engaged our technical accounting specialists to assist in the
assessment of the validity, completeness and accuracy of the
adjustments; and
• Recalculated the impact of the restatement adjustments on
the financial statements and notes to the financial statements
for the current year and comparative financial information.
We also assessed the appropriateness of the disclosures in the
notes to the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
84
85
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
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86
AI MEDIA ANNUAL REPORT 2022
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 29‐34 of the Directors’ Report for the year ended 30
June 2022.
In our opinion, the Remuneration Report of Ai‐Media Technologies Limited, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
Joshua Tanchel
Partner
Chartered Accountants
Sydney, 29 August 2022
86
87
Ai-Media Technologies Limited
Shareholder information
30 June 2022
The shareholder information set out below was applicable as at 17 August 2022.
Shareholder Information required by the Australian Securities Exchange Limited (ASX) Listing Rules and not disclosed
elsewhere in the Report is set out below.
In accordance with the 4th edition of the ASX Corporate Governance Council’s Principles and Recommendations, the 2022
Corporate Governance Statement, as approved by the Board, is available on the Company’s website at: https://www.ai-
media.tv/corporate-governance/. The Corporate Governance Statement sets out the extent to which Access Innovation
Holdings Limited has followed the ASX Corporate Governance Council’s Recommendations during the 2022 financial year.
Distribution of equity securities
Analysis of number of equity security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Ordinary shares
% of total
Number
of holders
shares
issued
Number of
shares
380
676
347
567
106
264,334
0.13
2,020,299
0.97
1.30
2,710,289
8.26 17,175,592
89.34 185,825,650
2,076
100.00 207,996,164
Holding less than a marketable parcel*
-
-
-
*
Minimum $ 500.00 parcel cannot be calculated due to multiple prices.
87
88
AI MEDIA ANNUAL REPORT 2022
Ai-Media Technologies Limited
Shareholder information
30 June 2022
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
PEARLIROSE PTY LTD
DEANNE WEIR
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
EEG VIDEO HOLDINGS LLC
BNP PARIBAS NOMS PTY LTD
BOND STREET CUSTODIANS LIMITED
MRS ANGELA ABRAHAMS + MR GEOFFREY ABRAHAMS
NATIONAL NOMINEES LIMITED
UBS NOMINEES PTY LTD
WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED
TYLER LEE PTY LTD
ONE FUND SERVICES LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ICONIC INVESTMENTS PTY LTD
CITICORP NOMINEES PTY LIMITED
GREG SIRTES
G & L CAPON SUPER CO PTY LTD
LEONIE JACKSON
PHILIP A HYSSONG
FRANK MAHLAB PTY LTD
Unquoted equity securities
There are no unquoted equity securities.
Substantial holders
Substantial holders in the Company are set out below:
PEARLIROSE PTY LTD
DEANNE WEIR
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
EEG VIDEO HOLDINGS LLC
BNP PARIBAS NOMS PTY LTD
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
% of total
Number held
27,639,898
16,072,336
15,902,484
14,630,017
12,817,209
11,000,000
9,321,610
8,518,722
7,834,953
7,002,805
5,700,000
5,583,571
4,430,901
3,515,994
2,572,659
2,493,603
2,144,020
1,687,500
1,644,185
1,200,000
shares
issued
13.29
7.73
7.65
7.04
6.16
5.29
4.48
4.10
3.77
3.37
2.74
2.69
2.13
1.69
1.24
1.20
1.03
0.81
0.79
0.58
161,712,467
77.78
Ordinary shares
% of total
shares
issued
Number held
27,639,898
16,072,336
15,902,484
14,630,017
12,817,209
13.29
7.73
7.65
7.04
6.16
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
88
Ai-Media Technologies Limited
Shareholder information
30 June 2022
Restricted securities
Class
EMPLOYEE ESCROW (EMP)
ESCROWED SHARES (ES6)
ESCROWED SHARES (ES7)
ESCROWED SHARES (ES4)
ESCROWED SHARES (ES3)
ESCROWED SHARES (ESC)
On market buy-back
Expiry date
9 September 2023
12 May 2023
12 May 2024
30 August 2023
30 August 2022
4 January 2024
89
Number
of shares
113,820
4,876,672
4,876,672
23,326,736
23,326,736
281,259
56,801,895
The Company completed an on market buy-back on 6 June 2022. The Company is not currently conducting an on-market
buy-back.
89
90
AI MEDIA ANNUAL REPORT 2022
CORPORATE DIRECTORY
DIRECTORS
Deanne Weir – Chair
Anthony Abrahams
John Martin
Alison Loat
Cheryl Hayman
COMPANY SECRETARY
Suzanne Sanossian
REGISTERED OFFICE
Level 6
277 William Street
Melbourne VIC 3000
PRINCIPAL PLACE OF BUSINESS
Level 1
103 Miller Street
North Sydney NSW 2060
SHARE REGISTER
Computershare Investor
Services Pty Limited
Level 3
60 Carrington Street
Sydney NSW 2000
AUDITOR
Deloitte Touche Tohmatsu
Grosvenor Place
225 George Street
Sydney NSW 2000
SOLICITORS
Becketts Lawyers
Level 21
90 Collins Street
Melbourne VIC 3000
STOCK EXCHANGE LISTING
Ai-Media Technologies Limited shares
are listed on the Australian Securities
Exchange (ASX code: AIM)
WEBSITE
http://www.ai-media.tv/
BUSINESS OBJECTIVES
Ai-Media Technologies Limited has
used cash and cash equivalents held
at the time of listing, in a way consistent
with its stated business objectives.
CORPORATE GOVERNANCE STATEMENT
The Company’s directors and
management are committed to
conducting the Group’s business
in an ethical manner and in accordance
with the highest standards of corporate
governance. The Company has adopted
and substantially complies with the
ASX Corporate Governance Principles
and Recommendations (4th Edition)
(‘Recommendations’) to the extent
appropriate to the size and nature of
the Group’s operations.
The Company has prepared a Corporate
Governance Statement which sets out
the corporate governance practices that
were in operation since listing, identifies
any Recommendations that have not
been followed, and provides reasons for
not following such Recommendations.
The Company’s Corporate Governance
Statement and policies, which is
approved at the same time as the
Annual Report, can be found on its
website: https://www.ai-media.tv/
corporate-governance/
91